KfW Sells a Record $1.5 Billion of Green Bonds in AmericaStefan Nicola
KfW Group, Germany’s state-owned development bank, said it sold $1.5 billion of green bonds in the U.S., a record offering of such securities in America.
The sale of bonds with a maturity of five years and paying 1.75 percent interest was managed by Bank of America Merrill Lynch, Citigroup Inc. and Morgan Stanley, KfW said today in an e-mailed statement. The bank received demand for $2.5 billion of the securities, with investors including BlackRock Inc., Barclays Plc and Calvert Investment Management, it said.
“This is a good example for green bond issuance and will help support the development of this important market,” Ashley Schulten, a BlackRock director, said in the statement.
The market for green bonds may almost triple this year to $40 billion from $14 billion last year, according to Michael Eckhart, a Citigroup managing director in New York. Proceeds from KfW’s offering will fund environment and climate protection projects in renewable energies, KfW said.