Italy opened its first green bond offering this week and raised more than €8 billion, in what was the biggest debut sovereign green bond from a European issuer to date. 

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Tanguy Claquin, head of sustainable banking at Crédit Agricole, which was a co-manager on the transaction, said the sale was met with “very strong support” from investors, especially those that are required to consider environmental factors in their portfolios. Schroders, which invested in the bond, said the details provided on projects including low-carbon transport, power generation, and biodiversity were “really impressive.”

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Johann Plé, senior portfolio manager at AXA Investment Managers said the price investors paid for the green bond in Italy “remained fair” and that this “highlights that strong demand does not necessarily mean investors have to pay a larger premium.”

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