Climate Bonds Initiative has released the fourth “Green Bond Pricing in the Primary Market” report analysing the performance of green bonds issued in the period October-December 2017. This is the last quarterly report; future publications will be produced semi-annually.
The report covers USD15.1bn or almost 40% of the face value of labelled green bonds issued in Q4. 15 EUR and 8 USD labelled green bonds are analysed in the report.
Highlights from Q4 2017:
- 14 out of 22 issuers are first time green bond issuers
- USD green bonds again had larger oversubscriptions and achieved larger spread tightening during book building than vanilla equivalents. EUR green bonds are similar to the market
- 44% of green bonds were allocated to green investors. Non-mandated investors continue to support the market
- The greenium: new issue premiums are not a given for buyers of green bonds
The report is a continuation of our ongoing assessment of green bonds 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. In November 2017, we published a report covering Q2 2017, and in February 2018, the report for Q3 2017.