Green bond financing gains popularity

Statistical news
Datum 6 november 2018

In the third quarter of 2018, the total value of outstanding bonds of the Dutch government and the corporate sector amounted to EUR 1712 billion. The share of green bonds, used to finance sustainable investment projects, amounted to more than EUR 20 billion. The outstanding volume of green bonds has doubled in the Netherlands since the first months of 2017.

Value of green bonds over EUR 20 billion

The levels of Dutch bonds outstanding went up by almost EUR 6 billion to EUR 1,712 billion in the third quarter of 2018. Some 1%, with a value of EUR 20.7 billion, are green bonds (see chart).

Investors can use green bonds to participate in sustainable investment projects. Twelve companies in the Netherlands are currently using this financing instrument to raise capital. In addition to Dutch banks and energy companies, this group also comprises financial holding companies of foreign energy companies. Some companies have issued just one green bond, others have issued several bonds. A total of 35 bonds issued by Dutch companies have earned the green label, and a new player is ready to enter the market. The Dutch State Treasury Agency recently announced that it plans to issue a green government bond in 2019.

Green bonds

To earn the green bond label, the issue proceeds must be used exclusively for investments that comply with the green bond principles (GBP), i.e. they should mitigate the risks associated with climate change and promote sustainable energy development and water management. The principles and the accompanying framework were developed by the Climate Bonds Initiative (CBI), an international not-for-profit organisation working to mobilise a capital market for climate change solutions. Sustainable investors have embraced the green label. According to the CBI report State of the Market 2018, the global market comprises nearly 500 green bonds with a total value of around USD 390 billion. You can find more information on the CBI website.

Number of green bonds has doubled since 2017

The figure shows in which quarter the green bonds were issued, with the oldest dating back to 2014. Their total outstanding value amounted to EUR 9.7 billion as at end-2016, and over the past two years this doubled to EUR 20.7 billion. In 2017, Dutch companies issued green bonds with a total value of EUR 7.3 billion. Another EUR 3.6 billion was added in the first two quarters of 2018. No green bonds were issued in the third quarter of 2018.

More information

Please refer to our statistics website for more information about issues and outstanding amounts of Dutch capital and money market paper and securities. Our securities statistics are in line with international definitions. The "green" bond label does not play a role here.