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GREEN BOND PRICING IN THE PRIMARY MARKET

GREEN bond PRICING IN THE PRIMARY MARKET : January 2016 - March 2017 Additional funding was received from the Ministry of Finance of Japan and the Government of the Kingdom of Denmark through the Ministry of Foreign Affairs highlights GREEN bonds attract a broader range of investors We looked at USD and EUR issuance over a 15-month period Over-subscription and tight PRICING is the norm Some GREEN bonds do not have new issue premiums GREEN bonds tighten in the immediate secondary MARKET and on average out perform benchmarks in the first monthPrepared jointly by the Climate Bonds Initiative and the International Finance CorporationWith support and funding from Pax World Mutual Funds, Obvion Hypotheken and RabobankGreen bond PRICING in the PRIMARY MARKET : January 2016 March 2017 PAGE 2 Anecdotal evidence has suggested that GREEN bonds are heavily oversubscribed and may price tighter than expected. This report explores the data to discover whether or not this is happening.

GREEN BOND PRICING IN THE PRIMARY MARKET: January 2016 - March 2017 Additional funding was received from the Ministry of Finance of Japan and the

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