It was the German government that introduced the twin bond concept in 2020. This means that green bonds are issued with the same financial characteristics as one of the government's conventional bonds, i.e. the same maturity, interest payment date and coupon rate. If necessary, the investors can exchange the green bond for a regular one (the twin) free of charge.
The Danish state has not specified in detail what it will use the money for, but all investments will follow the framework that the state itself developed together with its advisers. The framework includes investments in renewable energy and support for the transition to renewable fuels in the transport sector.
The Danish government issued the bond in question through syndication instead of a traditional auction procedure. Syndication provides the opportunity to borrow large volumes in a short time and with greater transparency for the lenders compared to auction.