Green Bond Pricing in the Primary Market H2 2020

Green Bond Pricing in the Primary Market H2 2020 reveals increasing signs of greenium in both public and private sector bond issuance in the second half of the year including performance of the inaugural German sovereign green Bund of September 2020. 

Analysis reveals that on average, both EUR and USD green bonds achieved higher book cover and greater spread compression than vanilla equivalents and green investors were allocated a greater percentage of deals than ever on average, demonstrating that treasurers attach value to the diverse investor base that green bonds are known to attract. Yield curves were available for 33 bonds in our sample and 19 of those achieved a greenium.

Highlights from Q3-Q4 2020:
  • Report includes 54 green bonds with a combined face value of USD62.5bn issued between July and December 2020. 
  • Qualifying green bonds in EUR and USD performed well on all metrics in the primary and immediate secondary market, on average. 
  • 56% of green bonds were sold to green investors
  • Green bond ETFs continued to report huge inflows during H2 2020