Greenium

The Sovereign Green Bonds (SGrBs) yield lower interest than conventional G-Secs, and the amount foregone by a bank by investing in them is called a greenium.

  • But central banks and governments the world over are encouraging financial institutions to embrace greeniums to hasten the transition to a greener future.
  • The greenium signifies the premium investors are willing to pay for green bonds because of their sustainability impact.

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