Asian ESG Monitor: Green Bonds - Veggie Is Good for You
Source: Climate Bond Initiatives
Green bonds are not just for saving the planet and there are additional benefits that Asian investors should consider. A green bond concept is quite new in Asia and we believe Asian investors need both monetary incentives and directives from their regulators/ governments to be more interested in saving the planet. In this flash note, we look at green bonds from an investor point of view. Green bonds can help reduce spread volatility and corporate governance risk in the investment portfolio. Green bond investments also help promote mutual funds or other collective investment schemes to green investors.
For now, green bonds trade flat with non-green bonds so there is no spread pick-up in exchange for doing good for our planet. On the other hand, green bonds are less vola...