Hesse is making a big wave: 1.5 billion for green bonds!

Hesse is making a big wave: 1.5 billion for green bonds!

On June 10, 2025, Hesse successfully issued its third green bond and was able to acquire 1.5 billion euros to finance sustainable spending. This bond is an important step in the Hessian strategy to promote ecological and social change while at the same time securing financial resources for environmentally friendly projects. Loud finanzen.hessen.de There was positive demand for the issue from investors from a variety of regions.

The distribution of shares by region shows broad interest. 37% of investors come from Germany, 17% from Asia, 14% from the Benelux countries, 12% from the Nordic countries, 11% from Southern Europe, 4% from France and 3% from Austria and Switzerland. A percentage of 2% comes from other countries.

Investors and guys

The bond has also attracted a diverse base of investors. 32% of returns come from banks, followed by 29% from funds and asset management, 28% from central banks and official institutions and 11% from insurance companies and pension funds. This division reflects the trust in Hessian green bonds and shows that sustainable investments are becoming increasingly important.

Additional information about the Hessian Green Bonds, including framework and investor presentation, is on the website finanzen.hessen.de available.

Market situation and returns

In the context of green bonds, the green federal securities are also important, which are issued by the deutsche-finanzagentur.de be issued. These securities are traded on the stock exchange after they are issued and are subject to price risk, which means that they may gain or lose value over their life. The returns on these bonds are fixed in a positive interest rate environment and offer an annual coupon.

The development of prices for Green federal securities is significantly influenced by changes in the bond market. A rising yield level usually leads to falling prices, while falling yields cause prices to rise. The extent of these price movements depends on the remaining term and coupon of the bond. In particular, longer remaining terms and lower coupons are more susceptible to stronger price reactions.

Long-term investors can still expect regular interest income from green federal securities, regardless of short-term price movements. These bonds tend to have a higher price on the capital market than their conventional counterparts. However, the return on green federal securities is lower, which is referred to as “greenium” – the value of a sustainable investment compared to regular investments.