Sustainability
Opinion Article
INVITED EDITOR
Editorial from
Manuel Antunes
Manuel Antunes is a Nova SBE alumnus.
July 16, 2024
7. Affordable and clean energy

7. Affordable and clean energy

Ensuring access to sustainable and modern energy sources for all
LEARN MORE

11. Sustainable cities and communities

Making cities and communities inclusive, safe, resilient and sustainable
LEARN MORE

13. Climate action

Take urgent action to combat climate change and its impacts
LEARN MORE

Green Bonds' Premium & Sustainability-Linked Debt

Manuel Antunes explains why green bonds have a premium and what sustainability-linked debt is solving for.

In this publication:

  • Greenium, the price premium paid by investors for green bonds, represents how willing investors are to pay for sustainable finance instruments over their standard counterparts.
  • Sustainability-linked instruments are a new addition to the sustainable finance world and help more companies get rewarded for setting neutral or positive impact targets.
  • Greenium is a useful indicator but like most new innovations in this space, has many shortcomings.

Greenium - How Does It Work?

Greenium is at the core of the discussion around the issuance of sustainable finance instruments. It reflects how much appetite there is from investors to accept a price premium (i.e. a lower yield) for a green bond in comparison to a conventional issuance.

Issuers pay close attention to the greenium as it allows companies to raise funds at a lower cost if they think green, even if funds raised come with covenants that constrain their use. (So no Michael Saylor Bitcoin leveraging going on… at least not until this crypto energy debate is finished once and for all)

Greenium is calculated as the difference between yields of green and conventional bonds, which in financial jargon is simply called the 'spread'. That spread exists mainly because green bonds are perceived as less risky than conventional bonds. Why?

This article was originally puplished on The Lykeion. You can subscribe to their newsletter here and access the full article.

Manuel Antunes
Manuel Antunes is a Nova SBE alumnus.
LEARN MORE
SHARE

Keep reading

Partnerships for Progress: The Role of Universities in Achieving the SDGs in Low- and Middle-Income Countries

This paper was hold by students in the following of Global Impact Mindset: UN SDG Module of NOVA SBE. The article highlights the crucial role of partnerships between universities, governments, and communities in achieving the United Nations Sustainable Development Goals (SDGs) in low- and middle-income countries (LMICs). The article argues that these partnerships can help universities in LMICs to address the challenges of expanding research and academic capacity while maintaining equitable access, promote equitable access to education and research, and design solutions that are responsive to the unique needs and challenges facing these groups. The article also emphasizes that universities in LMICs can act as a bridge between different sectors, facilitating collaboration and cooperation towards the common goal of sustainable development.

Data for Change competition

“Data for Change” is part of the Social Equity Initiative, a partnership established among Nova SBE, ”la Caixa” Foundation, and BPI

The waste of water in the clothing industry.

This paper was hold by students in the following of Global Impact Mindset: UN SDG Module of NOVA SBE. The study will focus on the sixth of seventeen United Nations Sustainable Development goals (Ensure availability and sustainable management of water and sanitation for all). As the clothing sector is one of the sectors in the industry that waste (responsible for approximately 20% of industrial water pollution from textile treatment and dyeing (Niinimäki, K., 2020)) and consume the most water (79 trillion litres per year), the research will be undertaken on this industry.

THE CHOICES OF

Nova SBE awarded at the 1st edition of the EFFAS Gasperini Awards

Professors Miguel Ferreira and José Tavares and Nova SBE PhD student Sharmin Sazedj were awarded the first edition of the EFFAS Gasperini Awards, where they represented Nova SBE

Subscribe our weekly newsletter

By subscribing to the Nova SBE Role to Play newsletter, you can stay up-to-date on the latest articles posted on the website.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

We all have a role to play

We are on a mission to be a community dedicated to the development of talent and knowledge that impacts the world.

With just ten years to go, an ambitious global effort is underway to deliver the 2030 promise. We want to take a stand and we are calling on our community to showcase how they are contributing to the 17 Sustainable Development Goals, whilst influencing more and more people to unravel their role to play.

Here, you will find four different ways your ideas can flourish, dialogue can be enhanced, and action can take place. You can choose one or all four, and Nova SBE will be there to support you all the way and guarantee tangible change.

We all have a role to play, and this is your way in.