The Netherlands successfully sold €4.982 billion ($5.26 billion) worth of new 3.25% January 2044-dated green government bonds, also known as DSL, on Tuesday, according to the Dutch State Treasury Agency (DSTA). The strong demand for the offering reached nearly four times the amount issued.
During the bookbuilding process, the bonds garnered €18.266 billion in demand by book close, slightly below initial expectations. This translates to a bid-to-cover ratio of 3.67, a solid indication of investor interest. The DSTA originally aimed to sell between €4 billion and €5 billion worth of this green bond, which represents the second Dutch green sovereign bond.
The bond's pricing reference was set against the 2.50% July 2044 Bund, with a cut-off spread of 29 basis points. It was issued at a uniform price of 98.63 and a uniform yield of 3.345%.
According to the DSTA, real-money investors were allocated 76% of the sale, while the remaining 24% went to other investors.
The bond issuance took place through a Dutch Direct Auction (DDA), with the DSTA acting as the sole bookrunner.
For more information, please contact Emese Bartha.
