Greenium

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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


See also

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