Green Bond Pricing in the Primary Market H2 2021

The Report is the 13th iteration of a leading series analysing pricing dynamics of green bonds, examining how these instruments offer pricing advantages for investors and issuers alike.

The H2 2021 Report analyses 53 EUR and 20 USD denominated benchmark-sized green bonds with a total volume of USD71.8bn issued between July and December 2021. The findings follow the H1 2021 report and longer-term Climate Bonds analysis which suggests that pricing benefits of green bonds are pervasive. This leading research series has embedded the concept of the greenium in the discourse of sustainable finance. It refers to the new issue premium, the extra yield that a buyer receives, and a seller pays for a new green bond compared to where seasoned bonds from the same issuer are trading in the secondary market at the time of issuance. 

Report findings will be presented in a Webinar with panellists from the Spanish Treasury, Amundi Group, Smurfit Kappa Group and SSGA
Date: Tuesday, 30th of March 2022
Time: 15:00 Paris / 14:00 London / 09:00 New York / 22:00 Hong Kong, Singapore 
Register via Zoom here.

Highlights from Q3-Q4 2021

  • Report includes 73 green bonds with a combined face value of USD71.8bn
  • Green bonds in both EUR and USD performed well on all metrics in the primary market, on average 
  • Half of bonds priced with a greenium or inside their yield curves
  • Allocations to green investors remained stable at 66%
  • The Sovereign Green Bond Club: four issuers added six new sovereign green bonds            
  • Green bond ETF assets reached USD1.4bn as ninth fund was launched

Previous reports can be found here. 

Acknowledgements: Green Bond Pricing in the Primary Market H2 2021 has been produced with funding support by Lyxor ETF, Amundi Group; IFC; and SSGA.

Suggested citation: 

Harrison, C., Green Bond Pricing in the Primary Market H2 2021 Climate Bonds Initiative, March 2022

 

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Posted Mar 15, 2022 by Leena Fatin