Case studies’ evidence of greenium in green bond sovereign issuances during the pandemic selloff of March 2020.

Ramos Murillo, Erick (2022): Case studies’ evidence of greenium in green bond sovereign issuances during the pandemic selloff of March 2020.

Abstract

Achieving the SDG goals will require enormous financing efforts from governments and the private sector. Green bonds have been emerging as a useful tool to help finance the gap for SDGs and have been expected to deliver some financial advantages. Nevertheless, there has not been strong evidence of this. This research finds initial evidence of a possible financial advantage for issuers. That is, green bonds’ issuances yields spiked lower during the Covid19 selloff versus their non-green comparables. There are several potential explanations for this and not enough data to point at one but this paper explores investor composition as a potential factor and finds some evidence of different investor behavior.

• Item Type: MPRA Paper
• Language: English
• Keywords: Greenium, green bonds, investor base, investor composition, MDBs, multilateral development banks, green issuances, yields, thematic bonds, financial advantages, financial markets, fixed income securities, sovereign issuances, sovereign bonds.
• Subjects: F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F47 - Forecasting and Simulation: Models and Applications; G - Financial Economics > G0 - General > G01 - Financial Crises; G - Financial Economics > G1 - General Financial Markets > G11 - Portfolio Choice ; Investment Decisions; G - Financial Economics > G1 - General Financial Markets > G12 - Asset Pricing ; Trading Volume ; Bond Interest Rates; G - Financial Economics > G1 - General Financial Markets > G15 - International Financial Markets; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q56 - Environment and Development ; Environment and Trade ; Sustainability ; Environmental Accounts and Accounting ; Environmental Equity ; Population Growth

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