The European Union launched its first ever green bond to record demand on Tuesday, according to a lead manager, taking its first step to potentially becoming the biggest issuer of environmentally-friendly debt with a record-sized deal.

       The 15-year green bond, which will raise €12 billion ($13.9 billion), received more than €135 billion of demand, a lead manager told Reuters, making it the largest green bond launch and the highest level of demand for a green bond sale to date.

       The bond, which will finance member states' environmentally beneficial projects as part of the bloc's Covid-19 recovery fund, is the first step for the EU — which aims to be carbon-neutral by 2050 — towards becoming a leading force in the fast-growing green debt market.

       Green bonds will fund 30 per cent of the EU's up to €800 billion Covid-19 recovery scheme, which gives grants and loans to members states until end-2026.

       Up to € 250 billion of issuance could transform the EU into the biggest green bond issuer.

       (This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)