Green Bond Pricing in the Primary Market: Jan/2016 - March/2017

Green Bond Pricing in the Primary Market - Is There a Greenium? Latest Analysis from Climate Bonds

Anecdotal evidence has suggested that green bonds are heavily oversubscribed and may price tighter than expected. This report explores the data to discover whether or not this is happening.

Download Green Bond Pricing in the Primary Market here.

 

Report highlights

• Green bonds attract a broader range of investors

• We looked at USD and EUR issuance over a 15-month period

• Over-subscription and tight pricing is the norm

• Some green bonds do not have new issue premiums

• Green bonds tighten in the immediate secondary market and on average out perform benchmarks in the first month
 

More to come

Note that this publication is part of an ongoing series. Our next publication will monitor qualifying bonds issued in Q2 2017, April to June.

As well as the metrics we have included here, we will explore other ways of comparing green bonds to a vanilla sample.

Download Green Bond Pricing in the Primary Market here.

 

 

 

 

 

Disclosure: This report has been prepared by the Climate Bonds Initiative IFC, Obvion, Rabobank, and Pax.  Additional funding was received from the Ministry of Finance of Japan and the Government of the Kingdom of Denmark through the Ministry of Foreign Affairs.

 

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