Cash Pouring Into ESG Debt Seen Suppressing Green Bond Yields
- Analysts predict greenium of around four to five basis points
- Emissions-accounting focus seen boosting appeal of green bonds
This article is for subscribers only.
The torrent of cash for anything related to cutting carbon emissions mean green bonds will remain a cheaper source of financing, according to Barclays Plc.
The greenium -- the yield discount that green bonds offer relative to conventional bonds -- will hover around four to five basis points for the rest of the year, analysts including Charlotte Edwards said, noting it will vary by markets.