Greenium
From ACT Wiki
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
