A project that makes products or develops technologies that are primarily aimed at reducing greenhouse gas emissions or supporting the use of clean energy.
Published in Chapter:
Testing the Green Bond Premium in COVID-19 Pandemia
Neslihan Turguttopbaş (Atılım University, Turkey)
Copyright: © 2022|Pages: 21
DOI: 10.4018/978-1-7998-8501-6.ch009
Abstract
The purpose of this chapter is testing the existence of the green bond premium in the secondary market by using a most update data set involving the market developments in the pandemia times. The variables such as rating, sector, amount of the issue, maturity, and external review are balanced by using a matching procedure of a green bond with conventional bond issued by the same issuer. The ask-bid spread differential is regressed by using a panel regression method under fixed and random effects. The results of the analysis revealed that there exists negative premium of 39 basis points, and the green bond premium is more profound for USD denominated twins than for Euro ones as there exist a negative premium of 59 basis points for USD-denominated green bonds whereas it is -26 basis points for Euro-denominated bonds.
