GREEN BOND PRICING IN THE PRIMARY MARKET: July - September 2017

The report analyzes 19 green bonds issued in Q3 2017, finding that they generally achieve higher oversubscription and tighter pricing relative to initial price thoughts than vanilla bonds. While a 'greenium' (pricing without a new issue premium) was observed in a minority of cases, half the sample did not exhibit a new issue premium. EUR green bonds showed strong secondary market performance, consistently tightening more than their corresponding indices after 7 and 28 days.

• Green bonds in the Q3 2017 sample generally priced tighter than their Initial Price Thoughts (IPT) compared to vanilla equivalents. EUR green bonds tightened by 11bps versus 9.1bps for vanilla bonds, while USD green bonds tightened by 12.1bps compared to 10.2bps for vanilla bonds.
• USD green bonds experienced higher oversubscription than vanilla bonds, with a 2.5x cover compared to 1.5x for the market average. EUR green bonds matched the market average oversubscription of 2.7x.
• Strong investor demand led to the upsizing of eight green bonds in the sample, resulting in a collective increase of USD 2.4 billion. This included ultra-long dated EUR bonds from SNCF and EIB.
• Approximately 47% of the funds raised were allocated to investors identifying as green or socially responsible. This allocation was higher for developed markets (54%) than for emerging and frontier markets (33%).
• The report found that green bond buyers cannot assume a new issue premium; half of the sample priced on or inside their secondary curves. Specifically, two bonds exhibited a 'greenium', four priced on their curves, and six priced outside their curves.
• EUR green bonds demonstrated strong immediate secondary market performance, with 100% tightening more than their corresponding indices after 7 days and all but one doing so after 28 days.

APA

Harrison, C., Filkova, M., & Boulle, B. (2018). GREEN BOND PRICING IN THE PRIMARY MARKET: July - September 2017. Climate Bonds Initiative. https://www.climatebonds.net/files/documents/publications/Green-Bond-Pricing-in-the-Primary-Market-July-September-2017.pdf

Chicago

Harrison, Caroline, Monica Filkova, and Bridget Boulle. GREEN BOND PRICING IN THE PRIMARY MARKET: July - September 2017. Climate Bonds Initiative, 2018. https://www.climatebonds.net/files/documents/publications/Green-Bond-Pricing-in-the-Primary-Market-July-September-2017.pdf.

Wikipedia

{{cite report |last1=Harrison |first1=Caroline |last2=Filkova |first2=Monica |last3=Boulle |first3=Bridget |title=GREEN BOND PRICING IN THE PRIMARY MARKET: July - September 2017 |publisher=Climate Bonds Initiative |date=February 2018 |url=https://www.climatebonds.net/files/documents/publications/Green-Bond-Pricing-in-the-Primary-Market-July-September-2017.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{harrison2018green, author = {Harrison, Caroline and Filkova, Monica and Boulle, Bridget}, title = {{GREEN BOND PRICING IN THE PRIMARY MARKET: July - September 2017}}, institution = {Climate Bonds Initiative}, year = {2018}, month = feb, url = {https://www.climatebonds.net/files/documents/publications/Green-Bond-Pricing-in-the-Primary-Market-July-September-2017.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }