Lmost Any Issuer Would Want To Aim For That Premium There Amp Rsquos Also The Obvious Issue With Green Bonds In They Are Project Baseda Particular Financed Witha Specific Bond Doesn Rsquot Necessarily Reflect Overall Environmental Footprint Of Some Investors Do Take Notice Broader Context But Others Don One Signature Example Was Saudi Electricity Co Us 1 3 Billion Sukuk Or Islamic Offering Last September News Today : Breaking News, Live Updates & Top Stories | Vimarsana

Global I’m not one to be cynical or cavalier about an issue like greenwashing. All the same, I would like to be clear-eyed on the sources and nature of any such risks in the green bond market. According to a research report from Dutch asset manager NN Investment Partners in October, 15% of green bond issuance then came from companies involved in controversial projects contravening environmental standards. That’s a real problem. Green bonds dominate a market that also includes instruments such as social bonds and sustainability-linked debt and loans, among other things. With so many options, some issuers may simply aim for the wrong one, especially if they’re in a hurry to capture investor demand.

Saudi arabiaInternational capital market association green bond principlesSaudi electricity coSaudi electricityI amp rsquom not one to be cynical or cavalier about an issue like greenwashing all the sameI would like to be clear eyed on the sources and nature of any such risks in green bond market according toa research report from dutch asset manager nn investment partners october5 of green bond issuance then came from companies involved in controversial projects contravening environmental standards that amp rsquo sa real problem bonds dominatea market also includes instruments such as social and sustainability linked debt loansMong other things with so many optionsOme issuers may simply aim for the wrong oneSpecially if they amp rsquo re ina hurry to capture investor demand the international capital market association green bond principles are readily availableO there amp rsquos little excuse for any issuer or investor not to digest understand them that saidHey are also amp ldquo voluntary process guidelines rdquo without firmer stricturesSsuers and even investors may be tempted to go easy on at least some of the guidelines so called amp ldquo greenium rdquo for green assets is also likely encourage issuance instanceTaly priced its first green sovereign bond ata slight premium to comparable regular debt in march with greenium well establishedLmost any issuer would want to aim for that premium there amp rsquos also the obvious issue with green bonds in they are project baseda particular financed witha specific bond doesn rsquot necessarily reflect overall environmental footprint of some investors do take notice broader context but others don one signature example was saudi electricity co us 1 3 billion sukuk or islamic offering last septemberStensibly to finance installation of smart metres and other green projects many commentators were surprised at the strength reception such an issuer positive interpretation is that we are seeing immense appetite for bonds sustainability focused investment instruments