Public debt issues continue to become more expensive following the decision of the European Central Bank (ECB) to raise interest rates to 4.5%. They do it in all areas, beyond the term of the issue or the color of the money.
Yesterday the Treasury placed 1,604 million euros in a green bond maturing in July 2024 at an interest of 4.48%. It is the second time so far this year that it has resorted to this type of sustainable emission and the fifth since it began using it in 2021. The previous auction of this type, held in April, closed with an interest of 3.8%.
Green debt is intended for sustainable projects and in principle should be placed at a lower cost than the market, due to the interest of many banks and investors in purchasing a type of product that contributes to their decarbonization objectives. According to financial sources, this premium for investing in green, known as greenium, is now very low because there is a large supply of bonds of this type. From Economy, they remember that the interest in emissions increases as the term increases and that this explains the levels reached.
In yesterday's issue, the Treasury received a demand equivalent to 2,494 million euros, above the 1,441 million in the green auction in April. The accumulated issuance of sustainable debt in circulation is now around €11.2 billion.
Yesterday the Treasury carried out other issues of State bonds and obligations, up to placing 6,442 million euros. Its objective was to market between 5,500 and 6,500 million, and finally it opted for the upper part of this range after registering a demand equivalent to 11,638 million euros.
Apart from the green bond, it issued another five-year bond at a marginal interest of 3.65%. In addition, it made a third issue of bonds at nine years and ten months at 3.98%.
The Treasury is working this year on issuing 70,000 million of new debt, as well as financing a total of 256,846 million euros. Its strategy has been to concentrate most of the operations in the first months of the year. The ECB raised interest rates to 4.5% in September.
