• Gustavo Bernal Torres

Squeeze On ‘Greenium’ As ESG Bond Investors Demand More Value

The market in sustainable debt is growing but issuers are being challenged on margins

  • Investors have long been willing to pay a premium for green bonds, rewarding companies or governments that want to clean up their act by giving them lower borrowing costs.

  • Figures from the Association for Financial Markets in Europe suggest greeniums are shrinking in Europe’s corporate bond market — one of the more advanced markets for green issuance. Spreads on ESG corporate bonds versus their “non-sustainable” or conventional counterparts have narrowed to less than one basis point — a 100th of a percentage point — in recent months, having climbed as high as nine basis points in 2020.

Source: https://www.ft.com/content/ecbed322-1709-4ed6-9f7f-d974f6e181da

0 comments

Recent Posts

See All

A green-finance boom has not been followed by bust. This year’s greenwashing scandals, and investors’ relaxed attitude towards them, have demonstrated an important truth: that there is money to be mad

Evidence from Environmental Integration and Sin Stock Exclusion. This paper shows how sustainable investing—through the joint practice of exclusionary screening and environmental, social, and governan