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

Nova SBE launches a program focused on innovation and sustainability

Nova SBE Innovation Ecosystem presented the initiative, the “Future Cities, Future Communities Innovation Accelerator” program, which will bring together students, researchers, startups, and SMEs to address themes related to innovation, green economy, and sustainability in a collaborative community setting.

Are we able to reduce inequalities by valuing our differences?

Did you ever catch "Gambozinos"? They exist, and they have a dream: gathering people from different social, economic, and cultural backgrounds through human and social development. Please get to know them here.

The European Energy Crisis

Manuel Antunes explains how this crisis centers on the intersection of bad weather for wind energy generation and decades of poor policy planning.

Data-driven decision-making in the Portuguese Social Sector report

Under the Social Equity Initiative, promoted by “la Caixa” Foundation, Data Science Knowledge Center provides an overview of data-driven decision-making in the social sector in Portugal.

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.