Green bonds: Exploring the corporate Greenium
Autor(a) principal: | |
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Data de Publicação: | 2021 |
Tipo de documento: | Dissertação |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10071/24313 |
Resumo: | Green bonds appeared in financial markets as a way to materialize both issuers’ and investors’ “green needs”. For issuers, these assets are a way to access private capital and fulfill green investment needs and for investors, represent a way to contribute to those projects that could make a difference on the fight against climate change. Technically, green and vanilla bonds, if issued by the same issuer, share the same characteristics (besides the green use of proceeds) and therefore, should be priced the same (or similarly) in the primary market. However, that seems to not always be the case. The main goal of this study is to conclude if, financially, green bonds represent a less costly alternative for companies, over traditional bonds. In other words, we will look for a greenium in the primary market (green bonds are issued with a lower yield than vanilla bonds). To do so, we will resort to a direct matching process to match the bonds, and to statistical tests, in order to infer on the statistical significance of the yield spreads found. Based on the methods employed, we found a greenium on the groups of green and vanilla bonds (2.3 bps), and in the subgroups of EUR bonds (7.2 bps), as well as in the subgroups of 2017, 2019 and 2020 (36; 1.3; e 1.9 bps respectively). After several tests, it was possible to conclude that none of the differentials (except for 2017), is statistically significant. Thus, we cannot affirm the existence of a greenium in the corporate bond market. |
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Green bonds: Exploring the corporate GreeniumAlteração climática -- Climate changeGreen bondsGreeniumFinancial performanceBond pricingObrigações verdesPerformance financeiraPreço das obrigaçõesGreen bonds appeared in financial markets as a way to materialize both issuers’ and investors’ “green needs”. For issuers, these assets are a way to access private capital and fulfill green investment needs and for investors, represent a way to contribute to those projects that could make a difference on the fight against climate change. Technically, green and vanilla bonds, if issued by the same issuer, share the same characteristics (besides the green use of proceeds) and therefore, should be priced the same (or similarly) in the primary market. However, that seems to not always be the case. The main goal of this study is to conclude if, financially, green bonds represent a less costly alternative for companies, over traditional bonds. In other words, we will look for a greenium in the primary market (green bonds are issued with a lower yield than vanilla bonds). To do so, we will resort to a direct matching process to match the bonds, and to statistical tests, in order to infer on the statistical significance of the yield spreads found. Based on the methods employed, we found a greenium on the groups of green and vanilla bonds (2.3 bps), and in the subgroups of EUR bonds (7.2 bps), as well as in the subgroups of 2017, 2019 and 2020 (36; 1.3; e 1.9 bps respectively). After several tests, it was possible to conclude that none of the differentials (except for 2017), is statistically significant. Thus, we cannot affirm the existence of a greenium in the corporate bond market.As obrigações verdes apareceram nos mercados financeiros para materializar as necessidades “verdes” dos emissores e investidores. Para os emissores, estes ativos representam uma maneira de aceder a capital privado para investimentos verdes, e para os investidores são uma forma de contribuir para esses projetos que podem fazer a diferença na luta contra o flagelo que são as alterações climáticas. Tecnicamente, as obrigações verdes e tradicionais, se emitidas pelo mesmo emissor, partilham as mesmas características (tirando o uso dos lucros em projetos verdes), e como tal, deviam ter um preço igual (ou semelhante) no mercado primário. No entanto, nem sempre esse é o caso. O principal objetivo deste estudo é concluir se, financeiramente, as obrigações verdes representam uma alternativa mais barata para as empresas, do que as tradicionais. Por outras palavras, vamos averiguar se, no mercado primário, existe um greenium (as obrigações verdes são emitidas com uma yield mais baixa que as obrigações normais). Para tal, vamos recorrer a um processo direto de emparelhamento das obrigações, e a testes estatísticos, para inferir sobre a significância estatística das diferenças de yield encontradas. Com base nos métodos utilizados, encontrámos um greenium nos grupos de obrigações verdes e tradicionais (2,3 pb), assim como nos subgrupos de obrigações emitidas em EUR (7,2 pb) e nas obrigações emitidas em 2017, 2019 e 2020 (36; 1,3; 1,9 pb respetivamente). Após vários testes, é possível concluir-se que nenhuma destas diferenças (excetuando a de 2017), é estatisticamente significativa. Deste modo, não é possível afirmar a existência de greenium no mercado obrigacionista.2022-01-25T15:15:43Z2021-12-22T00:00:00Z2021-12-222021-11info:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/masterThesisapplication/pdfhttp://hdl.handle.net/10071/24313TID:202857441engDamas, Francisca Morenoinfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-11-09T17:37:55Zoai:repositorio.iscte-iul.pt:10071/24313Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T22:17:19.168927Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Green bonds: Exploring the corporate Greenium |
title |
Green bonds: Exploring the corporate Greenium |
spellingShingle |
Green bonds: Exploring the corporate Greenium Damas, Francisca Moreno Alteração climática -- Climate change Green bonds Greenium Financial performance Bond pricing Obrigações verdes Performance financeira Preço das obrigações |
title_short |
Green bonds: Exploring the corporate Greenium |
title_full |
Green bonds: Exploring the corporate Greenium |
title_fullStr |
Green bonds: Exploring the corporate Greenium |
title_full_unstemmed |
Green bonds: Exploring the corporate Greenium |
title_sort |
Green bonds: Exploring the corporate Greenium |
author |
Damas, Francisca Moreno |
author_facet |
Damas, Francisca Moreno |
author_role |
author |
dc.contributor.author.fl_str_mv |
Damas, Francisca Moreno |
dc.subject.por.fl_str_mv |
Alteração climática -- Climate change Green bonds Greenium Financial performance Bond pricing Obrigações verdes Performance financeira Preço das obrigações |
topic |
Alteração climática -- Climate change Green bonds Greenium Financial performance Bond pricing Obrigações verdes Performance financeira Preço das obrigações |
description |
Green bonds appeared in financial markets as a way to materialize both issuers’ and investors’ “green needs”. For issuers, these assets are a way to access private capital and fulfill green investment needs and for investors, represent a way to contribute to those projects that could make a difference on the fight against climate change. Technically, green and vanilla bonds, if issued by the same issuer, share the same characteristics (besides the green use of proceeds) and therefore, should be priced the same (or similarly) in the primary market. However, that seems to not always be the case. The main goal of this study is to conclude if, financially, green bonds represent a less costly alternative for companies, over traditional bonds. In other words, we will look for a greenium in the primary market (green bonds are issued with a lower yield than vanilla bonds). To do so, we will resort to a direct matching process to match the bonds, and to statistical tests, in order to infer on the statistical significance of the yield spreads found. Based on the methods employed, we found a greenium on the groups of green and vanilla bonds (2.3 bps), and in the subgroups of EUR bonds (7.2 bps), as well as in the subgroups of 2017, 2019 and 2020 (36; 1.3; e 1.9 bps respectively). After several tests, it was possible to conclude that none of the differentials (except for 2017), is statistically significant. Thus, we cannot affirm the existence of a greenium in the corporate bond market. |
publishDate |
2021 |
dc.date.none.fl_str_mv |
2021-12-22T00:00:00Z 2021-12-22 2021-11 2022-01-25T15:15:43Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/masterThesis |
format |
masterThesis |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10071/24313 TID:202857441 |
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http://hdl.handle.net/10071/24313 |
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TID:202857441 |
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eng |
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eng |
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info:eu-repo/semantics/openAccess |
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openAccess |
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application/pdf |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
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Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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RCAAP |
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RCAAP |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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