Climate Bonds Initiative (CBI) released the new edition for H1 2023 of its “Green Bond Pricing in the Primary Market” report that analyses the pricing dynamics of green, social, and sustainability, sustainability-linked and transition bonds (denominated GSS+), examining how these instruments offer pricing advantages for issuers and investors, compared to vanilla equivalents. The H1 2023 iteration assessed more than 110 green bonds with a combined volume of 124.6 billion dollars, being the largest semi-annual sample to date.

CBI built yield curves for 50 non-sovereign bonds, with 16 bonds (or 32%) priced on or inside their own secondary market yield curves. Twelve bonds obtaining a “greenium” (green premium) were EUR denominated, while four were priced in USD. CBI explained that green label offers extra appeal, firstly because of the dedicated investor base, and secondly because of the liquidity it offers to investors who may later decide to sell.

The report also found that 66% of green bonds were allocated to investors describing themselves as having green or responsible investment mandates. Regarding green bond ETFs, it concluded that the total fund assets in EUR and USD green bond ETFs ended the H1 2023 period with a net increase of 20% on the prior H2 2022 period.