China’s Green Bonds Are Cheaper Than Almost Everywhere Else
- Green bond demand in China trails supply as issuance jumps
- Companies can’t get better pricing for environmental projects
A worker stands in an observation tower over looking photovoltaic panels at a solar farm in Gonghe County, Qinghai province, China.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
Compared with the rest of the world, China’s green bonds are on sale.
Demand hasn’t kept pace with a torrent of issuance, leaving borrowers unable to command the price premium -- or “greenium” -- that companies elsewhere in the world enjoy as a reward for environmentally friendly initiatives.