Abengoa Stress May Prove a Real Test for Green Bond Market

Over 600 solar troughs, which act like giant mirrors, redirect the sun's rays to a central tower which heats water to generate steam to power turbines, at the Abengoa solar-thermal plant near Seville.

Markel Redondo/Bloomberg

A slump in the bond prices of a subsidiary of the beleaguered Spanish renewable energy company Abengoa SA may spill over into the broader green bond market, according to Ulf Erlandsson, a portfolio manager at AP4, Sweden’s state-owned pension fund.

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