New research by the Climate Bonds Initiative shows green bonds are more heavily oversubscribed than vanilla equivalents, tighten more during the bookbuilding process and continue to attract investors that are not green mandated.
The not-for-profit organisation, which oversees the Climate Bonds Standard, sampled green bonds over a two-year period and found new issue premiums are not a given for buyers of green bonds. In fact, 55% of transactions in the sample either priced on the curve or inside it.
The research published at the end of May flags the potential for green bonds to bifurcate from their vanilla counterparts in coming years, and raises the spectre that...
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