Green bond pricing in the primary market: July - December 2018

This is the 7th iteration in a long-term analytical series by Climate Bonds. It features a special EM section looking at China and guest commentary by Jason Mortimer of Nomura Investment Management in Tokyo, discussing the concepts around ‘greenium.’

For this report 24 EUR and 10 USD labelled green bonds issued in H2 2018 and totalling USD29bn were analysed. Eighteen out of 34 bonds are from repeat issuers.

Report Highlights:

  • USD29bn of benchmark green bonds included
  • 53% of green bonds were allocated to investors declaring themselves green
  • EUR green bonds achieve larger book cover, and slightly lower spread compression than vanilla equivalents on average
  • USD green bonds achieve slightly lower book cover, and the same spread compression as vanilla equivalents on average
  • 7 days after pricing, green bonds had tightened more than vanilla benchmarks, consistent with prior observations
  • 28 days after pricing, green bonds had, on average, tightened by more than matched indices
  • Two green bonds priced inside their yield curves in H2 2018 exhibiting greenium. EIB was priced off its green bond curve which sits inside the vanilla curve


Suggested Citation: Harrison, C. 2019. “Green Bond Pricing in the Primary Market July-December 2018.” Climate Bonds Initiative.

Download the full report here