Sovereign green bonds: the reserve portfolio’s panacea?
German, Swedish, Danish and UK debt managers speak about ‘twin bonds’ and other efforts to deal with liquidity issues
An increasing number of governments are issuing green sovereign bonds for the first time. Some of these issuers are triple-A rated or represent reserve-currency jurisdictions, which offer central banks a safer way to enhance the green credentials of their assets without compromising safety.
The major increase in public spending by governments introduced to tackle the Covid-19 pandemic in 2020–21 has contributed to this phenomenon. For instance, by May 2021, up to 19 jurisdictions had jointly
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