Focus. Sustainable Finance
Economy, work and organisations
Competition and markets
The Creation of Value through Sustainable Debt Instruments
Sustainable debt instruments, and in particular green bonds, sustainability-linked bonds, and green loans, represent an innovative, constantly-growing solution to finance business activities and projects. These instruments are characterized by the possible presence of the so-called greenium, the negative premium that debt subscribers are willing to pay the issues for those instruments. Although the presence of the greenium seems to be a factor common to many sustainable debt instruments, it does not have a solid basis in reduction of the risk profile, but rather in investor preferences.