Table of Contents:
A new horizon for sustainable investments
In recent years, attention to sustainable investments has grown exponentially, and Green BTPs represent a striking example of how the bond market can adapt to environmental needs. With a recent issue of 5 billion euros against a demand of about 130 billion, the Ministry of Economy and Finance has demonstrated that investors are increasingly interested in securities that not only offer a return, but also contribute to a sustainable future
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The history of BTP Green in Italy
The BTP Green journey began in 2014 with the issue of 500 million euros by the Hera multi-utility. However, it was in 2021 that the Italian Treasury decided to embark on this adventure, presenting the first Green BTP with a duration of twenty-five years. Since then, the working capital of these securities has grown considerably, reaching 35.4 billion euros by the end of 2023. This positive trend has been accompanied by growing interest from investors, with orders that far exceed available issues
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The success of the issues and the interest of investors
BTP Green’s issues recorded extraordinary numbers. For example, the inaugural issue saw significant participation, with 530 investors, while the reopening attracted 350 participants. These data not only highlight the interest in green bonds, but also the confidence of investors in Italy’s sustainable growth potential. The coverage ratios for subsequent issues, such as the BTP Green 20, have shown strong commitment on the part of the market, with coverage ratios of 6.7 and 5.3, respectively
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Sustainability and environmental impact objectives
Green BTPs are not only financial instruments, but they represent Italy’s concrete commitment to sustainability. The proceeds from emissions are used to finance state expenditures that have a positive impact on the environment, contributing to the achievement of the 2030 Sustainable Development Goals. By issuing these securities, Italy aligns itself with the European Taxonomy of Sustainable Activities, promoting investments in projects that promote ecological transition and the fight against climate change
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