Green Bonds show Evidence of “Greenium” in Second Half of 2020

“Greenium” or the term for the premium on green bond prices, was increasingly visible in public and private sector bond issuance last year. The Climate Bonds Initiative modeled yield curves for 33 green bonds and found that 19, half dollar-dominated, showed a “greenium, seven priced on their curves, and five prices with normal new-issue premium. Additionally, the German green bonds priced with a “greenium” maintained a lower yield in the secondary market as well as showed lower volatility.