Maturity issue shows how green debt really functions

BBVAissued a green additional tier one (AT1) bond on 7 July 2020. An AT1 is a perpetual bond with a call so it can remain outstanding forever, though they are typically called at the first call date (BBVA’s Green Perpetual AT1 Bond is callable in January 2026). Conversely, public sector issuers consider issuing sustainable commercial paper at ultra-short maturities with indications of investor interest. Germany’s NRW Bank is considering issuing, others have already used the format, other market participants remain undecided.