(Reuters) – The European Union will raise 6 billion euros from the sale of a new, 20-year green bond on Tuesday, according to memos from two lead managers seen by Reuters.
The green bond will fund member states’ environmentally friendly projects that are part of the bloc’s coronavirus recovery fund.
The bond, due Feb 4 2043, is guided to pay a spread of around 11 basis points over the mid-swap level, the memos said.
It will be the EU’s second green bond following a debut issue last October. That bond saw record demand and raised a record size, in what was the bloc’s first step to potentially becoming the world’s biggest issuer of green bonds.
The EU hired BofA, Citi, Credit Agricole, Danske Bank and JPMorgan for the sale on Monday.
(Reporting by Yoruk Bahceli; editing by Sujata Rao)
