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dc.titleThe Sovereign Greenium: Global Evidence and LAC Perspectives
dc.contributor.authorRoch, Francisco
dc.contributor.authorBrichetti, Juan Pablo
dc.contributor.authorCavallo, Eduardo A.
dc.contributor.orgunitInfrastructure and Energy Sector
dc.coverageLatin America
dc.coverageThe Caribbean
dc.date.available2025-11-25T00:11:00
dc.date.issue2025-11-25T00:11:00
dc.description.abstractThis technical note examines the presence and magnitude of sovereign greeniums - the yield discount that green bonds command relative to conventional bonds - with a focus on Latin American and Caribbean (LAC) markets. Using panel regression analysis of bond pricing data, this note finds that LAC sovereign green bonds trade at an average discount of 2.2 basis points compared to similar conventional bonds, which is modest but statistically significant. This greenium is smaller than the 6.3 basis points observed in advanced economies, reflecting differences in market depth, investor base composition, and institutional frameworks. The findings suggest that while LAC sovereigns can achieve financing benefits from green bond issuance, success depends critically on credible frameworks, external verification, and programmatic issuance strategies.
dc.format.extent58
dc.identifier.doihttp://dx.doi.org/10.18235/0013840
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/The-Sovereign-Greenium-Global-Evidence-and-LAC-Perspectives.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectSustainable Infrastructure
dc.subjectFinancial Bond
dc.subjectFinance
dc.subjectGreen Bond
dc.subjectGovernment Bond
dc.subjectMode of Transport
dc.subjectClimate Change Adaptation
dc.subjectBiodiversity Conservation
dc.subject.jelcodeQ01 - Sustainable Development
dc.subject.jelcodeQ58 - Government Policy
dc.subject.keywordsSovereign greenium;Sustainable Finance
dc.typeTechnical Notes
idb.identifier.pubnumberIDB-TN-03245
idb.operationRG-T4528
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