In a bold stride toward climate leadership, Slovenia has issued its first sustainability-linked bond, raising €1 billion to back its environmental ambitions.
The 10-year bond, maturing in July 2035, offers a 3.125% coupon—yet what makes it remarkable isn’t the rate, but the risk.
If Slovenia fails to cut greenhouse gas emissions by 35% by 2030 (from 2005 levels), the bond’s interest rate will rise by 50 basis points. Surpass a 45% reduction, and investors will see a cut instead.
The issuance is tied to the country’s new Sustainability-Linked Finance Framework, which lays out performance indicators, targets, reporting duties, and third-party verification.
Backed by strong demand—orders exceeded €6.5 billion—the bond attracted wide interest across Europe, with the UK taking the largest share.
