Green Bond Pricing in the Primary Market: July - September 2017

Green Bond Pricing in the Primary Market: Climate Bonds Releases Third Report in Series

Climate Bonds Initiative has released “Green Bond Pricing in the Primary Market” report analysing the performance of green bonds at issue July - September 2017. The report covers USD15.4bn, slightly over half of the combined face value of labelled green bonds issued in the third quarter of 2017. 

Download the full report here.


Highlights from Q3 2017:

  • 12 EUR and 7 USD labelled green bonds issued in Q3 2017 were analysed
  • Upsizing at issue added USD2.4bn
  • 47% of green bonds were allocated to green investors
  • Two supranational issuers extended the green bond pricing curve in EUR
  • Green bonds on average achieved larger spread tightening during book-building than vanilla bond equivalents
  • Green bonds achieved at least the same oversubscription as vanilla equivalents
  • Half the green bonds in our sample priced on or inside their secondary curves
  • Green bond buyers cannot automatically expect a new issue premium
  • EUR-denominated green bonds had larger price improvement than corresponding indices after 7 and 28 days

The report is a continuation of our ongoing assessment of green bond pricing. A preliminary ‘Snapshot’ briefing paper examining Q4 of 2016 was produced for the 2017 Climate Bonds Annual Conference. The first Green Bond Pricing Report examining eligible green bonds from 2016 and Q1 of 2017 was released in August, followed by a report covering Q2 2017 published in November 2017.


Download the full report here.


Disclosure: Green bond Pricing in the Primary Market July-September 2017 was prepared jointly by the Climate Bonds Initiative and the International Finance Corporation (IFC). Support and funding was provided by Pax World Mutual Funds, Obvion Hypotheken, and Rabobank. 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.

Disclosure: Several organisations named in this communication are Climate Bonds Partners. A full list of Partners can be found here.

Disclaimer: The information contained in this communication does not constitute investment advice in any form and the Climate Bonds Initiative is not an investment adviser.  Any reference to a financial organisation or debt instrument or investment product is for information purposes only. Links to external websites are for information purposes only. The Climate Bonds Initiative accepts no responsibility for content on external websites.

The Climate Bonds Initiative is not endorsing, recommending or advising on the financial merits or otherwise of any debt instrument or investment product and no information within this communication should be taken as such, nor should any information in this communication be relied upon in making any investment decision. 

Certification under the Climate Bond Standard only reflects the climate attributes of the use of proceeds of a designated debt instrument. It does not reflect the credit worthiness of the designated debt instrument, nor its compliance with national or international laws.

A decision to invest in anything is solely yours. The Climate Bonds Initiative accepts no liability of any kind, for any investment an individual or organisation makes, nor for any investment made by third parties on behalf of an individual or organisation, based in whole or in part on any information contained within this, or any other Climate Bonds Initiative public communication.