From ACT Wiki
Securities - borrowings - pricing - ESG.
A green yield curve describes the prices of green securities trading in the secondary market, differentiated by their maturities.
- Germany to create a green curve
- "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.
- '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...
- ... 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.
- So Germany’s structuring of this issue could well be key in drawing more borrowers to the green market.
- '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."
- Reuters - Yoruk Bahceli - 2 September 2020