Pension funds and insurance companies snatched up the largest share of green bonds (14.3%) issued by the Italian government among the investors with a long-term investment horizon, the Finance Ministry said in a note.

Central banks and government institutions bought the remaining 10% of the total 24.3% of the green bonds allocated to long-term financial investors, it added.

Hedge funds secured 3.6%, while fund managers acquired 53.1% of the total green bonds issued, with banks underwriting 18.5%.

A total of 530 investors took part in the offering for a demand that reached a record level for the inaugural issuance of sovereign green bonds in Europe of over €80bn. ESG investors subscribed to more than half of the placement.

Foreign investors took over 73.7% of the BTP Green, as the Italian sovereign green bond is called, while Italian investors 26.3%. Investors in the UK accounted for the largest share of the placement (22.1%), with Germany, Austria and Switzerland taking 19.9%, and France 10.1%.

Investors located in the Iberian Peninsula took 7.3% of the green bond share, with Scandinavian taking 5.1%, and other European countries including Benelux taking 2.1%. Outside Europe, investors from the US subscribed to 1.9% of the total issuance, and 0.5% went to Asian investors.

Pegaso – The contractual pension fund for employees in the utilities sector will gradually integrate an “active shareholding” approach onto its ESG asset management strategy.

The fund clarified in a statement that at the moment it has not finalised the details of an engagement policy that integrates voting rights into its investment strategy.

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