Exploring the Greenium Effect An empirical analysis of its determinants

This thesis delves into the concept of the "Greenium" and its implications within the framework of Corporate Bonds, offering a comprehensive exploration. The first section provides a general overview of bonds, emphasizing their relevant technical features and principal functionalities as financial instruments. Subsequently, the focus narrows to Green Bonds, detailing their specific own characteristics; to provide a robust contextual foundation, this elaboration also mentions the most relevant legislative frameworks covering Green Bonds. Next, the study moves on to an empirical analysis that focuses on the comparison between Corporate Green Bonds and the respective Conventional Bonds. Employing specific search criteria through Bloomberg platform, a dataset has been developed to be used as input for our research conducted using the statistical software “Stata”. The aim of the investigation is to examine the presence of the so-called "Greenium effect" in the European context and to identify the main determinants that contribute to its variability. Thought the Ordinary Least Squares (OLS) regression, accompanied by specific t-tests, the presence of weakly significant Greenium (about 0.097 and 0.2499 basis points) was discovered and, in addition, we have recognised that it is highly influenced by factors such as the creditworthiness, the liquidity, the price, the coupon rate, the duration and the type of currency.