The Spanish Treasury announced the launch of its inaugural green bond offering, raising €5 billion to finance projects supporting Spain’s climate and environmental objectives, including climate change mitigation and adaptation, protection of water resources, circular economy transition, and biodiversity recovery, among others.

The issuance was well received, drawing €60 billion of demand, over 90% from international investors.

Nadia Calviño, Spain’s Vice President of Economic Affairs and Digital Transformation, said:

“We have issued 5 billion and there has been a demand of 60 billion. This shows the extraordinary confidence of very demanding international investors.”

With the issuance of its initial green bond, Spain will join the rapidly growing sustainable sovereign debt market. The UK recently released its Green Financing Framework as it prepares to issue at least £15 billion of green gilt this year, Canada has announced plans for a $5 billion green bond issue, and other countries including Italy and Germany also recently issued their first green bonds. The European Union in particular is set to become a central region for sovereign sustainable finance, following the release this week of its green bond framework, as it sets to kick off a massive €250 billion green bond program with an initial issuance anticipated in October.

Eligible categories for investment of proceeds under Spain’s recently released green bond framework include Renewable energy, Clean transportation, Sustainable water & wastewater management, Energy efficiency, Protection & restoration of biodiversity, ecosystems & environmentally sustainable management of natural resources, Pollution prevention and control and circular economy, and Adaptation to climate change.