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Germany’s Debut Five-Year Green Bond Meets Tepid Demand

  • Oversubscription rate is lower than prior conventional sale
  • Critics say the debt should finance new climate protection
Entega AG Solar Park With Renewables Set To Replace Germany's Natural Gas
Photographer: Alex Kraus/Bloomberg
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Germany’s second foray into green debt received a surprisingly lukewarm welcome from investors.

It raised 4.6 billion euros ($5.4 billion) from the debut auction of five-year green debt, yet demand only exceeded the amount offered by 1.29 times. That lagged the oversubscription rate for its most recent sale of conventional five-year debt, and was far off the near-record demand seen in its first issue of 10-year green securities.