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ORCID

Piotr Jaworski: 0000-0002-0069-9750

Keywords

green bonds, greenium, ESG regulations, bond market

Abstract

The aim of this paper is to estimate the greenium in the financial debt market, calculated as the difference between the yield of green bonds and conventional bonds with the same type of with respect to euro-denominated bonds, type of the debt security, type of issuers, and maturity. The hypothesis is The greenium for the euro-denominated bonds does exist. For the analysis, yield curves for green bonds and conventional bonds were built. It employed the yield curve methodology proposed by Nelson Siegel Svensson. Statistical tests on greenium were also prepared. Daily data were collected from the Refinitiv Eikon database, covering the period from January 4, 2010, to October 17, 2024. The results suggest that greenium exists and is statistically significant. This phenomenon is noticed for the whole sample as well as the individual issuer and its bonds. The presented results show that greenium is negative and that it equals 9 basic point. The findings can be useful for regulators, governments, investors, and especially for financial institutions. They can be useful for the creating investment portfolio or estimating risk and capital adequacy measures for banks and insurance companies, which is especially significant with respect to the revised Solvency II directive.

Acknowledgments

Funding

The research received no funds.

Declaration of Conflicting Interests

The author declared no potential conflicts of interest with respect to the research, authorship, and publication of the article.

Declaration about the scope of AI utilization

The authors did not use an AI tool in the preparation of the article.

First Page

165

Last Page

175

Page Count

11

Received Date

04.08.2025

Revised Date

29.10.2025

Accept Date

05.11.2025

Online Available Date

12.12.2025

DOI

10.7172/2353-6845.jbfe.2025.2.9

JEL Code

G14, G15, Q56, F51

Publisher

University of Warsaw

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