How large is the typical green bond greenium?

The greenium averages 2–5 basis points for investment-grade sovereign and supranational green bonds. Corporate green bonds show 1–3 bps greenium. High-yield green bonds show negligible or no greenium. The greenium is larger for first-time issuers in green format and for labeled bonds with strong use-of-proceeds verification.

Is the greenium economically significant for issuers?

A 5 bps greenium on a USD 1 billion 10-year bond saves approximately USD 5 million in NPV of interest savings. For large sovereign issuers, this is material. However, the incremental reporting, verification, and legal costs of a green bond program can offset most or all savings for smaller issuers.

Green Bond Greenium Pricing

Calculate the greenium (green premium) as the yield difference between a green bond and an equivalent conventional bond from the same issuer, measuring investor demand for labeled sustainable debt.

Use the full interactive calculator below, or

Related Calculators

ESG Alpha Premium

Finance Long-tail

SLL Coupon Step-Down

Finance Long-tail

Green Bond Greenium Pricing

Related Calculators

Frequently Asked Questions

How large is the typical green bond greenium?

Is the greenium economically significant for issuers?