China’s Green Bonds Are Cheaper Than Almost Everywhere Else
(Bloomberg) — Compared with the rest of the world, China’s green bonds are on sale.
Demand hasn’t kept pace with a torrent of issuance, leaving borrowers unable to command the price premium — or “greenium” — that companies elsewhere in the world enjoy as a reward for environmentally friendly initiatives.
But investors may not have the upper hand for long, said Martin Dropkin, head of Asian fixed income at Fidelity International. “We think the greenium-free days are numbered,” he wrote in a research note. “It pays to be early in China’s green debt space.”
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