Green curve and Green finance: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Layout.)
 
imported>Doug Williamson
(Add link.)
 
Line 1: Line 1:
''Securities - borrowings - pricing - ESG.''
Green finance is finance raised for the purposes of environmentally sound projects.


A green curve describes the prices of green securities trading in the secondary market, differentiated by their maturities.


Green curve is an abbreviation for green ''yield curve''.
:<span style="color:#4B0082">'''''Green Finance Deal of the Year 2017 - Anglian Water'''''</span>


:"Anglian's inaugural green issuance stood out.


:<span style="color:#4B0082">'''''UK to build out green curve'''''</span>
:"Anglian's team marketed an eight-year fixed-sterling bond and demonstrated that the proceeds would be used in line with Green Bond Principles, assured by independent opinion provider DNV GL."


:"It was announced at Budget 2021 that the government will issue its first sovereign green bond - or green gilt - this summer, with a further issuance to follow later in 2021 as the UK looks to build out a 'green curve'."
:''The Treasurer magazine, February 2018, p23 - Deals of the Year.''
:''Green gilt issuance, UK Debt Management Office''




:<span style="color:#4B0082">'''''Germany to create a green curve'''''</span>
Green finance is a key component of sustainable finance.


:"Germany's green debt plan differs from peers such as France and the Netherlands in that each green bond sold will be matched with a conventional twin...


:The structure will show investors the exact cost of going green. Until now, gauging the green premium meant examining an issuer’s regular yield curve to gauge where a hypothetical conventional bond identical to the green bond in question might trade.
== See also ==
 
* [[Carbon-neutral]]
:'For the first time, we will be able to exactly see what the (green) premium looks like without having to do any maths, except for a simple "minus" calculation, one yield minus the other,' said Christoph Rieger, head of rates and credit research at Commerzbank in Frankfurt...
* [[ESG investment]]
 
* [[Green bond]]
:... accurately gauging relative issuance costs should convince more borrowers of the financial benefits of going green, said Piet Christiansen, chief strategist at Danske Bank in Copenhagen.
* [[Green Bond Principles]]
 
* [[Green Finance Education Charter]]
:So Germany’s structuring of this issue could well be key in drawing more borrowers to the green market.
* [[Green Finance Initiative]]
 
* [[Green Finance Institute]]
:'When Germany will (create) a green curve, then this is what we will price the green projects off of. So it is really that there will be a benchmark of where green pricing will be, going forward,' Danske’s Christiansen said."
* [[Green Finance Strategy]]
 
* [[Green Finance Study Group]]
:''Reuters - Yoruk Bahceli - 2 September 2020''
* [[Green financing]]
 
* [[Green Investment Group]]
 
* [[GSS]]
:<span style="color:#4B0082">'''''26 out of 33 green bonds priced on or inside their yield curves'''''</span>
* [[International Capital Market Association]]
 
* [[Issuance]]
:"The new issue premium is the [difference in yield] for a new bond compared to where seasoned bonds from the same issuer are trading in the secondary market at the time of issuance...
*[[Khaki finance]]
 
* [[Loan Market Association]]
:There is no reason why a bond being green should impact its price, since green bonds rank pari-passu (on equal footing) with bonds of the same payment rank and issuer.
* [[Network for Greening the Financial System]]
 
* [[Second Party Opinion]]
:There is no credit enhancement to explain pricing differences and issuers of green bonds often incur costs such as Second Party Opinions and Certification, although these are typically negligible.
* [[Sustainable finance]]
 
* [[Ten Point Plan for a Green Industrial Revolution]]
:Green bonds and vanilla equivalents are subject to the same market dynamics..."
 
:''Green bond pricing in the primary market - July to December 2020 - Climate Bonds Initiative''




==External link==


== See also ==
[https://www.gov.uk/government/publications/green-finance-strategy UK Government Green Finance Strategy, 2019]
* [[Bond]]
* [[Green bond]]
* [[Green gilt]]
* [[Greenium]]
* [[Maturity]]
* [[Premium]]
* [[Secondary market]]
* [[Yield curve]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Financial_management]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Ethics_and_corporate_governance]]
[[Category:Long_term_funding]]
[[Category:Compliance_and_audit]]
[[Category:Ethics]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Financial_products_and_markets]]

Revision as of 13:03, 22 November 2022

Green finance is finance raised for the purposes of environmentally sound projects.


Green Finance Deal of the Year 2017 - Anglian Water
"Anglian's inaugural green issuance stood out.
"Anglian's team marketed an eight-year fixed-sterling bond and demonstrated that the proceeds would be used in line with Green Bond Principles, assured by independent opinion provider DNV GL."
The Treasurer magazine, February 2018, p23 - Deals of the Year.


Green finance is a key component of sustainable finance.


See also


External link

UK Government Green Finance Strategy, 2019

Retrieved from ‘https://wiki.treasurers.org/w/index.php?title=Green_curve&oldid=23959’