Greenium: Difference between revisions
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imported>Doug Williamson (Create page. Source - The Treasurer online - 10 June 2021 - https://www.treasurers.org/hub/treasurer-magazine/how-to-choose-right-sustainable-finance-kpis) |
imported>Doug Williamson (Links ordering.) |
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== See also == | == See also == | ||
* [[Bond]] | |||
* [[bp]] | * [[bp]] | ||
* [[Green]] | * [[Green]] | ||
* [[Premium]] | * [[Premium]] | ||
Revision as of 08:50, 21 July 2021
Sustainability - sustainable finance - pricing.
Greenium is a compound of "green premium".
In this context, greenium means the saving that an issuer can enjoy on its cost of borrowing, because it is issuing a green instrument.
Investors are willing to pay more - reflected in a reduced investment yield - for the perceived benefits of investing in the green instrument.
- Issuers enjoy greenium
- "Investor interest in sustainability-linked bonds (SLB) is clear from the ‘greenium’ or pricing benefits issuers have enjoyed.
- Tesco’s [January 2021] SLB, for example, priced 15bps inside its secondary curve."
- Agnes Gourc and Cecile Moitry - co-heads, sustainable finance markets - BNP Paribas - The Treasurer online - 10 June 2021
