Green Bond Pricing in the Primary Market: H2 (Q3-Q4) 2019

Released March 2020

The report monitors the performance of 36 EUR and 13 USD denominated benchmark size green bonds with a total value of USD36bn issued during H2 2019.

This is the 9th report, and the fourth semi-annual report, marking the period July-December 2019. Prior to 2018, reports were released every quarter, the first one being the Q4 2016 Snapshot.

Highlights from Q3-Q4 2019:
• 36 EUR and 13 USD labelled green bonds issued in H2 2019 were analysed
• Green bonds achieved larger book cover and greater spread compression than vanilla equivalents on average
• Yield curves were built for 19 green bonds in our sample. Just three priced with a normal new issue premium.  The remainder priced either on their yield curves or with a greenium
• Half of green bonds were allocated to investors declaring themselves green
• Seven and 28 days after pricing, green bonds had, on average, tightened by more than matched indices and baskets of bonds sharing similar characteristics
• Lyxor launched a second green ETF: The Lyxor Green Bond ESG Screened fund, bringing the total number of green bond ETF products to six
• Spotlight on sovereign green bond pricing: Twelve governments have joined the sovereign green bond club to date