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March 2022 (published: 14.03.2022)
Number 1(48)
Home > Issue > Raising funds by issuing bonds: is it profitable for the company to be «green»?
Karginova-Gubinova V.V.
Any company is interested in obtaining financial resources for the longest possible period and at the lowest possible cost. The purpose of this study is to determine whether the issuance of green bonds allows raising capital on more favorable terms compared to other types of bonds. Given the need to transition to a sustainable economy and to encourage companies to green their production and economic activities, the subject of this work looks relevant. The study is based on data from the Moscow Exchange and the financial portal Smart-lab.ru at the end of 2021. As part of the study, various yield and risk indicators of green bonds, social bonds, national project bonds and other corporate bonds were calculated; analysis of variance were used. The distinguishing characteristics of green bonds have been identified. It is shown that by a number of characteristics private green bonds can be more attractive to investors than other corporate ones. In countries with developed green financial markets, green bonds provide companies with cheaper resources, and also allow redistributing socially desirable costs between the production and economic sphere and financial sphere. In Russia, due to the low environmental interest of investors and their high assessment of the risks of green projects, there is no negative premium on green bonds. The results obtained complement the concept of green finance. The practical significance of the conclusions is to expand the capacity of company managers to plan financial activities and to provide the authorities with additional tools to stimulate the greening of economic entities. Accordingly, the work is of interest to corporate managers, authorities, experts in the field of green finance, as well as investors.
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Keywords: green bonds, Sustainable growth sector, Moscow Exchange, bond yield, bond risk, duration, debt financing, green investments, green finance, sustainable economy.
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
UDC 336.763.3; 336.648; 336.645.3
Raising funds by issuing bonds: is it profitable for the company to be «green»?
Any company is interested in obtaining financial resources for the longest possible period and at the lowest possible cost. The purpose of this study is to determine whether the issuance of green bonds allows raising capital on more favorable terms compared to other types of bonds. Given the need to transition to a sustainable economy and to encourage companies to green their production and economic activities, the subject of this work looks relevant. The study is based on data from the Moscow Exchange and the financial portal Smart-lab.ru at the end of 2021. As part of the study, various yield and risk indicators of green bonds, social bonds, national project bonds and other corporate bonds were calculated; analysis of variance were used. The distinguishing characteristics of green bonds have been identified. It is shown that by a number of characteristics private green bonds can be more attractive to investors than other corporate ones. In countries with developed green financial markets, green bonds provide companies with cheaper resources, and also allow redistributing socially desirable costs between the production and economic sphere and financial sphere. In Russia, due to the low environmental interest of investors and their high assessment of the risks of green projects, there is no negative premium on green bonds. The results obtained complement the concept of green finance. The practical significance of the conclusions is to expand the capacity of company managers to plan financial activities and to provide the authorities with additional tools to stimulate the greening of economic entities. Accordingly, the work is of interest to corporate managers, authorities, experts in the field of green finance, as well as investors.
Read the full article
Keywords: green bonds, Sustainable growth sector, Moscow Exchange, bond yield, bond risk, duration, debt financing, green investments, green finance, sustainable economy.
DOI 10.17586/2310-1172-2022-15-16-24