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dc.titleThe Impact of the Creation of a Sovereign ESG Reference Yield Curve on Corporate ESG Bonds Issuances from Latin American and Caribbean
dc.contributor.authorCunha, Daniel
dc.contributor.authorCraveiro, Giovana
dc.contributor.authorRossi, Marina
dc.contributor.orgunitConnectivity, Markets and Finance Division
dc.coverageLatin America and the Caribbean
dc.date.available2024-03-14T00:03:00
dc.date.issue2024-03-14T00:03:00
dc.description.abstractThis paper explores a granular database from the Inter-American Development Bank (IDB) Green Bond Transparency Platform covering the issuance of 430 corporate and sovereign Environmental, Social, and Governance (ESG) bonds in Latin America and the Caribbean (LAC) that are outstanding in international markets. The goal was to investigate how the creation of a sovereign ESG reference yield curve can boost the private ESG bond market. Using a difference-in-differences (DID) approach, we empirically estimate that the creation of a sovereign ESG reference curve roughly leads to a 60 percent increase in the volume of corporate bond issuances and a 25 percent increase in the number of ESG corporate bond issuances in the external markets after three years. On the mechanisms, we argue that the sovereign ESG reference yield curve works as a benchmark for private sector ESG bond issuers by providing a standard against which the performance of ESG bonds can be measured.
dc.format.extent30
dc.identifier.doihttp://dx.doi.org/10.18235/0012859
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/The-Impact-of-the-Creation-of-a-Sovereign-ESG-Reference-Yield-Curve-on-Corporate-ESG-Bonds-Issuances-from-Latin-American-and-Caribbean.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectCredit Market
dc.subjectCorporate Bond
dc.subjectFinancial Bond
dc.subjectPrivate Sector
dc.subjectSovereign Rating
dc.subjectGreen Bond
dc.subjectSovereign Default
dc.subjectGovernment Bond
dc.subjectCapital Market
dc.subjectRating
dc.subjectSovereign Guaranteed Credit Risk
dc.subject.jelcodeH63 - Debt • Debt Management • Sovereign Debt
dc.subject.jelcodeE43 - Interest Rates: Determination, Term Structure, and Effects
dc.subject.jelcodeR50 - Regional Government Analysis: General
dc.subject.keywordsESG;thematic bond;green;Social;Sustainability;sustainability-linked bond;debt capital markets;sovereign debt;LAC;corporate sector;international markets
dc.typeWorking Papers
idb.identifier.pubnumberIDB-WP-01577
idb.operationRG-E1850
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