Securities Law

Bond Issuers Can Save 25 Basis Points by Going Green, Citi Says

Feb. 22, 2021, 6:23 PM

Issuers of debt for environmental, social and governance purposes can save as much as 25 basis points in financing costs because of insatiable demand, according to Citigroup Inc.

  • “The green bond is actually pricing through an issuer’s non-green curve,” said Philip Brown, Citi’s head of public sector debt capital markets. “This can be anything from 15 basis points to 20 basis points, even 25 basis points”
    • “This is probably here to stay because investors want this product,” Brown said at Citi’s Financing A Greener Planet event Monday
  • Portfolio rebalancing amid rising Treasury yields presents an opportunity for investors...

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