imported>Doug Williamson |
imported>Administrator |
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| ''Securities - borrowings - pricing - ESG.''
| | Multinational corporation/company. |
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| A green curve describes the prices of green securities trading in the secondary market, differentiated by their maturities.
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| Green curve is an abbreviation for green ''yield curve''.
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| :<span style="color:#4B0082">'''''UK to build out green curve'''''</span>
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| :"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'."
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| :''Green gilt issuance, UK Debt Management Office''
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| :<span style="color:#4B0082">'''''Germany to create a green curve'''''</span>
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| :"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...
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| :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.
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| :'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...
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| :... 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.
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| :So Germany’s structuring of this issue could well be key in drawing more borrowers to the green market.
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| :'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."
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| :''Reuters - Yoruk Bahceli - 2 September 2020''
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| :<span style="color:#4B0082">'''''26 out of 33 green bonds priced on or inside their yield curves'''''</span>
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| :"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...
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| :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.
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| :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.
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| :Green bonds and vanilla equivalents are subject to the same market dynamics..."
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| :''Green bond pricing in the primary market - July to December 2020 - Climate Bonds Initiative''
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| == See also == | | == See also == |
| * [[Bond]] | | * [[Multinational corporation/company]] |
| * [[Green bond]]
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| * [[Green gilt]]
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| * [[Greenium]]
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| * [[Maturity]]
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| * [[Premium]]
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| * [[Secondary market]]
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| * [[Yield curve]]
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| [[Category:Accounting,_tax_and_regulation]]
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| [[Category:The_business_context]]
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| [[Category:Corporate_finance]]
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| [[Category:Investment]]
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| [[Category:Long_term_funding]]
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| [[Category:Compliance_and_audit]]
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| [[Category:Ethics]]
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| [[Category:Identify_and_assess_risks]]
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| [[Category:Manage_risks]]
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| [[Category:Risk_frameworks]]
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| [[Category:Risk_reporting]]
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| [[Category:Financial_products_and_markets]]
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