This twelfth Climate Bonds' pricing series report observes how green bonds perform in the primary markets. It includes 75 green bonds with a combined face value of US$75.9 billion issued between January and June 2021 (H1 2021).
During this period, green bonds achieved higher book cover and spread compression than vanilla equivalents, on average. Overall, 66% of green bonds were allocated to investors describing themselves as having green or responsible investment mandates. In addition, green bonds in both EUR and USD performed well on all metrics in the primary market, on average, while allocations to green investors increased by a massive 18% reaching 66%.
The report's methodology is designed to capture the most liquid portion of the green bond market and is therefore limited to USD and EUR bonds with a minimum original issue size of US$500 million. Developed market, emerging market and supranational issuers are included.