A theoretical and empirical analysis of sustainable finance
: the existence of a greenium in the corporate green bond market

  • Euclides Martins Lopes (Student)

Student thesis: Master's Thesis


The subject of an eventual difference in pricing between green bonds and conventional bonds is a widely researched topic within the realm of green finance. This thesis serves to contribute to the existing literature and the need for updated data and research regarding this new financial instrument and how they impact investors’ preferences. By comparing corporate green bonds to quasi-identical conventional bonds, we find a statistically insignificant green bond premium of -7.2 bps and thus conclude that there seems to be no pricing difference between bonds that mainly differ with respect to their green label. These results remain identical when isolating subsamples from the most dominant currencies and the most prevalent industry groups as they all display a small, statistically insignificant green bond premium. Lastly, we analyzed bond pairings issued after the start of the Covid-19 pandemic and find a green bond discount which was, yet again, statistically insignificant. These findings imply that investors are not willing to exchange financial returns for non-pecuniary environmental benefits.
Date of Award7 Jul 2022
Original languageEnglish
Awarding Institution
  • Universidade Católica Portuguesa
SupervisorPaulo Alves (Supervisor)


  • Green bonds
  • Premium
  • Sustainability
  • Green finance
  • ESG
  • CSR


  • Mestrado em Finanças

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