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Green Bond Pricing in the Primary Market: January - June 2020
The report analyzes 46 green bonds (USD 37bn) issued in H1 2020. It finds that green bonds generally outperformed vanilla equivalents in terms of book cover and spread compression, particularly in the EUR market. Despite a general market sell-off during the COVID-19 pandemic, green bonds maintained sufficient liquidity and showed resilience. Approximately 55% of allocations went to green or socially responsible investors. While the 'greenium' (pricing inside the yield curve) was less consistent than in H2 2019, 11 of 21 bonds with buildable yield curves priced on or inside their curves. The report also highlights the emergence of the communications sector, exemplified by Swisscom, and the growth of green bond ETFs.
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Document type: Report