To accelerate funding for the green transition to reduce greenhouse gas emissions by 70% by 2030 compared to 1990 levels, Denmark will issue its first green bond on 19 January 2022 with a coupon rate of 0.00%, and maturity on 15 November 2031, depending on stable market conditions. It will be issued as a "twin bond" with the same characteristics of the country's conventional 10-year benchmark bond in accordance with the Kingdom of Denmark's Green Bond Framework
The proceeds from the issuance of the green bonds will be allocated to the green central government expenditures that support the production of renewable energy sources and the green transition of the transport sector.
The finance ministry of Denmark announced the green bond would cover government expenses of DKN 10-12 billion (USD 1.52-1.82 billion) in 2022.
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