(In)-Credibly Green Which Bonds Trade at a Green Bond Premium

Julia Kapraun, Carmelo Latino, Christopher Scheins, Christian Schlag

2021 | Academic | Fixed Income, Greenium

Using data on more than 1,500 Green and 20,000 conventional bonds we find no dfference in yields at issuance for Green bonds. The existence and significance of the Green premium, however, varies substantially across currencies and issuer types. It is high and signficant for bonds issued by official entities such as governments or supranationals, or for bonds denominated in EUR.