Slovenia Ties Debt Interest to Emissions in First for Europe

Slovenia became the first European government to link its bond interest payments to environmental targets, providing a template for other countries in the region.

The Alpine nation sold €1 billion ($1.2 billion) of a 10-year note where the coupon hinges on meeting greenhouse gas emission goals, according to a person with knowledge of the matter. The rare sovereign sustainability-linked bond attracted orders of over €6.5 billion, with such debt only sold by a few countries so far.