“By issuing a green bond, you demonstrate to the market that you’re fully committed to the sustainability agenda. The message this sends also serves to boost your corporate reputation. Green bonds tend to attract new investors who are interested in a long-term investment commitment. And for those who still have their doubts about issuing green bonds, the message from the survey from those who have already done so could not be clearer: just do it!”, says Lars Mac Key, Head of DCM Sustainable Bonds at Danske Bank. 

A magnet to investors
The green label appears to act like a magnet to investors regardless of domicile. Due to lack of green bond supply, green bond investors tend to ignore hurdles such as currency and issue size. For this reason, international investors to a local currency green bond issuance is greater than for normal bonds.




Graphic: Danske Bank, Data: Green Bond Treasurer Survey


Moreover, green investors seems more willing to hold on to their bonds rather than selling them. This adds stability to the market, which is attractive to investors.

Time and money offset by the benefits
There are certain expenses associated with issuing a green bond instead of a classic one. It costs time and money to get the blueprint from a second party opinion and once the issuance is completed, extra reporting is required. Nevertheless, these things are fully offset by the benefits of a more committed investor base and the massive interest inherent in green issuing itself these years. 90 per cent. of the issuers indicate that the funding costs were, overall, identical to or lower than a classic bond.

Participants future plans
Looking ahead, 88 per cent. of the participants plan to issue more green bonds.




Graphic: Danske Bank, Data: Green Bond Treasurer Survey