Green bonds attract higher subscription rates, better secondary pricing than conventional ones: CBI

MARKET demand and pricing of green bonds in the first half of 2022 remained stronger than their plain vanilla equivalents despite a drop in issuance volumes, according to a report from Climate Bonds Initiative (CBI).

Green bond offerings denominated in euros and the US dollar were shown to have higher subscription rates than their conventional bond equivalents, according to CBI, whose green bond standards are widely referenced by the sustainable finance industry.

The report also found that, after issuance, green bonds also commanded higher prices on the secondary market than their conventional counterparts, suggesting positive spread compressions against their vanilla equivalents.