Green bonds as means of raising capital and creating value within the ESG framework
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Keywords
Green bonds ; Green bond premium ; ESG framework ; Green label ; Stock market reactionAbstract
This thesis focuses on green bonds and aims to examine, via various studies conducted in this field, market’s reaction to green bond issues. In particular, the studies examined aim to explore whether there is a pricing advantage for green bond issuers and the factors contributing to any such advantage as well as whether the green bond issue creates value for the issuer in the long run. The green bond market is deemed to be still at infancy stage; however, literature shows a particular interest in examining a potential benefit for firms in green bond issues, especially with respect to the cost of debt and the market reaction to such issues.
Further, this thesis analyses the ESG framework which plays a very important role in the green bond market; to that extent, the ESG regulatory framework is presented, with an emphasis on the European regulatory framework, which includes some of the most important worldwide actions taken in the field.