The Dutch finance ministry is on Tuesday issuing its first green state bond, the first green bond issued by a European country with a triple A credit rating.

The government wants to use the money raised via the bond to finance sustainable projects in the years ahead. The target volume is €4bn to €6bn, but this will be increased to around €10bn in due time, the finance ministry said.

Dutch bank ABN Amro, which claims to be a leader in this market, has arranged the subscription among investors and is coordinating allocation of the bond, which will mature in 2040.

Finance minister Wopke Hoekstra first announced plans to issue the green bond last October, saying it would ‘represent a solid asset for any green portfolio’.

The money raised via the bond will be used for green investments, including wind farms, large bike parks, strengthening dykes and improving home insulation.

‘If Dutch pension funds, insurers and banks want to invest in green bonds, at the moment they have to go to foreign providers,’ Hoekstra said at Monday’s presentation. ‘This green bond will help the further development of the green capital market in the Netherlands.’