(Bloomberg) -- The European Union will help reduce the costs of issuing green bonds in poorer countries, European Commission President Ursula von der Leyen said on Monday.
The bloc will set up a Green Coupon Facility to subsidize part of the coupons for issuers that face very high interest rates, she said in a speech at the Association of Small Island States Leaders’ Meeting. Green bonds raise capital linked to environmentally-friendly projects, though the bulk of issuance has taken place in rich countries.
“This will allow you to grow your green bond market much faster and raise the money you need for your people and your economy,” she said. “In Europe, green bonds have proven to be an incredibly powerful tool to mobilize private investments but in developing countries the green bond market is struggling to take off.”
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