Simmons & Simmons advises Dutch State as it issues debut €5.98bn Green Bond

22 May 2019

International law firm Simmons & Simmons has advised the State of the Netherlands on its debut €5.98bn issue of Green Bonds. The Dutch State is the first AAA-rated sovereign to issue green labelled-debt. It is also the largest initial Green Bond issuance to date in the Netherlands and the second largest globally.

The proceeds of the Green Bonds will be allocated to green, or climate-related, expenditures and investments undertaken by the Dutch government. These categories include renewable energy, energy efficiency, clean transportation and climate change adaptation initiatives.

The final order book amounted to around €21bn, reflecting the strength of demand for the Green Bonds. Investors with demonstrable sustainability credentials were subject to priority allocation on a limited basis. The Green Bonds have a coupon of 0.50% annually with a maturity of 20 years and are expected to be tapped to a benchmark size of approximately €10bn in the years ahead, as is regular practice for longer-dated debt issued by the Dutch State. The Dutch State Treasury Agency established Primary Dealer group acted on the transaction.

Capital markets partner Peter Voorhees led the Simmons & Simmons team which included partner Marieke Driessen, supervising associate Shari Taylor Molloy and associate Niek Groenendijk. The team has extensive experience advising on innovative green financing matters.

Commenting on the transaction, Peter Voorhees said: “We are honoured to advise the Dutch State on this landmark transaction and to contribute to their goal of further enhancing and supporting the establishment of a robust green capital market.”

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