Spain targets 2021 net borrowing at 110 bln euros, plans green bond
MADRID, Oct 28 (Reuters) - Spain's Treasury plans to raise a net 100 billion euros ($118 billion) via government bonds and around 10 billion euros in short-term bills next year, when it also expects to launch its first green bond, the draft 2021 budget showed on Wednesday.
The overall issuance target is largely in line with its latest projection for this year, of 115 billion euros, which was revised lower earlier this month as revenues turned out to be higher than expected and EU coronavirus rescue funds were about to flow in.
In May, the government sharply raised the target to 130 billion euros to pay for pandemic-linked spending from 32.5 billion euros.
Spain also plans to issue its debut green bond with a maturity of between 20 and 25 years, "with the aim signalling the state's commintment to long-term green financing", the document showed.
Green bonds are used to finance clean energy and environmental projects such as wind farms and low-carbon transport.
Spain is one of the worst-hit countries in Europe by the pandemic, with the third-highest death toll. Its economy shrunk almost 18% in the second quarter and recovery in the third quarter was harmed by a new wave of contagion in the summer.
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(Reporting by Belén Carreño and Andrei Khalip)
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