Denmark's green bond market is expected to face a significant drop this year. Market experts attribute this change to the diminishing interest in ethical debt from both local and international investors.
The second green bond from Denmark is predicted to witness a 'greenium' (the premium investors pay for green bonds) of two basis points or less. This figure represents a considerable decrease from the five basis points it achieved in its inaugural auction in January 2022.
In preparation for the 10-year offering, Denmark recently conducted an investor call as part of a syndication process. This move marks the preliminary steps towards the issuance of this green bond.
Green bonds, known for their pricing advantage, have been a pivotal part of Denmark's strategy to transition towards more sustainable practices. However, the anticipated reduction in 'greenium' mirrors shifting investor sentiments towards ethical debt instruments.
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