Since 2020 more and more EU members have been making the most of the strong investor appetite for securities with a sustainability character, thanks to the increasing focus on environmental matters and the policy swing toward the green economy.
Some Greek enterprises have already made such moves (Mytilineos, Public Power Corporation (PPC), Ellaktor, Hellenic Petroleum (ELPE), Terna Energy and National Bank of Greece), and such an issue is also in the plans of the Ministry of Finance. The issue of the first green sovereign bond is not expected this year, but forms part of the long-term strategy of the Public Debt Management Agency.
The focus of the European Central Bank on the green security market and on green development projects (new or existing) that the activation of the Next Generation EU fund sets as a priority opens a significant window of opportunity for Greece to join the club of those countries, which is expected in 2022. In an analysis, Bank of America has recommended that Greece as well as the governments of Spain, Portugal, Austria and Finland take such a step immediately. It estimates that the ECB and the European Commission will encourage such moves and offer higher issue limits for green paper, thanks to their strong policy shift regarding climate change and sustainable growth.
