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LUND UNIVERSITY LIBRARIES

Green Bonds in The Nordic and Western Europe: Exploring Greenium Differences

Holm, David LU and Alin, Isak (2024) NEKH02 20241
Department of Economics
Abstract
This thesis investigates whether there is a difference in yield to maturity at issuance for green bonds, called greenium, in the Nordics compared to some Western European countries. By using cross-sectional data for 2602 green bonds and conventional bonds. We perform coarsened exact matching (CEM) to match green bonds to similar conventional bonds and conduct a regression to investigate if there are differences in yield to maturity at issuance for green bonds between the two regions. A greenium could not statistically be supported for neither of the regions. However, green bonds issued by Nordic companies and governmental institutions have a lower yield to maturity at issuance, on average 72 basis points, compared to the Western European... (More)
This thesis investigates whether there is a difference in yield to maturity at issuance for green bonds, called greenium, in the Nordics compared to some Western European countries. By using cross-sectional data for 2602 green bonds and conventional bonds. We perform coarsened exact matching (CEM) to match green bonds to similar conventional bonds and conduct a regression to investigate if there are differences in yield to maturity at issuance for green bonds between the two regions. A greenium could not statistically be supported for neither of the regions. However, green bonds issued by Nordic companies and governmental institutions have a lower yield to maturity at issuance, on average 72 basis points, compared to the Western European countries. (Less)
Please use this url to cite or link to this publication:
author
Holm, David LU and Alin, Isak
supervisor
organization
course
NEKH02 20241
year
type
M2 - Bachelor Degree
subject
keywords
Green bonds, Greenium, Coarsened Exact Matching, CEM
language
English
id
9162709
date added to LUP
2024-09-24 08:59:47
date last changed
2024-09-24 08:59:47
@misc{9162709,
  abstract     = {{This thesis investigates whether there is a difference in yield to maturity at issuance for green bonds, called greenium, in the Nordics compared to some Western European countries. By using cross-sectional data for 2602 green bonds and conventional bonds. We perform coarsened exact matching (CEM) to match green bonds to similar conventional bonds and conduct a regression to investigate if there are differences in yield to maturity at issuance for green bonds between the two regions. A greenium could not statistically be supported for neither of the regions. However, green bonds issued by Nordic companies and governmental institutions have a lower yield to maturity at issuance, on average 72 basis points, compared to the Western European countries.}},
  author       = {{Holm, David and Alin, Isak}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Green Bonds in The Nordic and Western Europe: Exploring Greenium Differences}},
  year         = {{2024}},
}