August 2017 – Green, Social and Sustainability Bonds

Evidence on ‘greeniums’ mixed, but momentum promising

16 August 2017

Green bonds do not yet offer cheaper funding than conventional comparables, according to a report from the Climate Bonds Initiative (CBI) and the International Finance Corporation (IFC), even if momentum reflected in moves from IPTs and secondary performance – notably on an Apple bond – suggests a positive future.

HLEG expert: Climate charges likelier than green risk weight cut

9 August 2017

A former Bank of England MPC and PRA board member played down hopes of a cut in risk weights for green mortgages at a meeting yesterday (Thursday) where members of the European Commission high level expert group (HLEG) and others discussed their recommendations on sustainable finance.

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Green/ESG CP: Pioneering steps

The expansion of green, social and sustainable or sustainability-linked formats into short term instruments has the potential to boost overall volumes and impact, and pioneers have already begun testing appetite in the commercial paper market. However, the sector’s intrinsic characteristics raise questions over how to best exploit its potential. In this special Sustainabonds report, sponsored by ABN AMRO, Neil Day explores experience to date and asks what could catalyse growth.