June 13 (Reuters) - Germany was set to raise 4.25 billion euros($4.59 billion) from a new 30-year green bond on Tuesday, seeing over 29 billion euros of investor demand, according to memos from two lead managers seen by Reuters.
Germany sized the bond, due 15 August 2053, at 4.5 billion euros and will retain 250 million euros of the issuance on its own books, the memos said.
The bond will price at a yield spread of 0.5 basis points below its twin, an otherwise identical conventional bond, the memos said.
Germany, alongside other governments, has been issuing green bonds, which fund environmentally-beneficial expenditures. It has been building a yield curve of such debt since 2020.
Germany's green bonds are all twinned with an otherwise identical conventional bond, allowing investors to switch between the two to mitigate liquidity concerns.
Germany hired Barclays, BNP Paribas, Deutsche Bank, Goldman Sachs, JPMorgan and Nomura for the sale on Monday. ($1 = 0.9257 euros) (Reporting by Yoruk Bahceli; editing by Dhara Ranasinghe)