By Marta Vilar – MADRID (Econostream) – Belgium may issue a new green bond in 2027, according to Maric Post, Director of Treasury and Capital Markets at the Belgian Debt Agency.
In an interview with Econostream on Tuesday (transcript here), Post said that such an issuance was “certainly an option” for 2027, and the matter could be considered as part of next year’s funding plan.
Asked what conditions would be required to move ahead with a new green bond in 2027, Post said that “we must ensure sufficient eligible green expenditures—not just for one year, but sustainably over several years.”
Interest from investors in green OLOs “remains strong,” he said, adding that therefore, “issuing a new green bond would make sense if those conditions were met.”
He said recent rating downgrades of Belgium by agencies like S&P Global Ratings and Moody’s “will affect demand but probably only marginally.”
Investors were unlikely to alter how they trade Belgian bonds in response to these developments, he said, as their focus remained on the overall risk–return outlook. In his view, current pricing already reflected the situation, with spreads versus other Eurozone countries having adjusted in advance of the downgrades.
While acknowledging a possible “limited negative impact,” he said that the news had largely been priced in and carried no meaningful consequences for Belgium’s issuance strategy.
The Belgian Debt Agency still planned to issue a 5-year benchmark bond as its third syndicated transaction in 2026, he said, adding that they wanted “to maintain issuance across different benchmark points on the curve,” and thus kept the plans to issue a 5-year benchmark later this year.
Timing of this transaction would remain flexible and would depend on market conditions, he said.
“Historically, our third syndicated transactions have taken place between March and September, and all options remain open,” he said. “While volatility has eased somewhat, geopolitical risks—particularly the ongoing war in the Middle East—remain. We will wait for a suitable market window, whether that arises before or after the summer.”
He said that the current volatility did not necessarily push the deal into the second half of 2026, as execution could still occur before summer if conditions allow.
On size, Post pointed to a trend toward larger deals, citing this year’s €8 billion 10-year benchmark, the largest OLO syndication to date. He said the upcoming 5-year deal was expected to fall within the typical €5 billion to €8 billion range.
“We don’t fix the size in advance, but we expect a benchmark-sized deal,” he said. “In our case, in recent deals, that has typically ranged between €5 billion and €8 billion.”
Current bond market environment had sparked discussions about the Belgian Debt Agency’s positioning along the curve, with some questioning whether the steepness could prompt a shift toward shorter maturities.
Post said it was “too early to say” whether such a shift would occur in 2027, adding that a significant increase in curve steepness could trigger it. Otherwise, he said, only modest year-to-year adjustments would be expected.
Strong demand was generally around the 10-year segment and slightly shorter maturities, he said, but there had been interest recently around the 15-year tenor.
Asked about foreign currency issuance, he said it was “absolutely” still the case that Belgium could issue in foreign currency other than USD, pointing to recent opportunities seen in AUD.
