Publicação
The role of currency denomination in the African green bond market- exaimining yeld differentials and implications for financial advising with insights from the DZ bank and DBSA
| Resumo: | This thesis examines the role of currency denomination in African Green Bonds, focusing on yield differentials and the presence of Greenium. Empirical analysis reveals no significant evidence of Greenium but confirms a robust currency premium, with Hard Currency Bonds yielding lower rates than Local Currency Bonds. Insights from interviews with DZ Bank and DBSA highlight the importance of addressing default risk, illiquidity, and strategic trade-offs between currencies. While Green Bonds show limited potential to mitigate currency premiums, the findings underscore the need for tailored advisory strategies. DZ Bank is positioned to support sustainable finance growth through active engagement in Africa. |
|---|---|
| Autores principais: | Meyerhoff, Rebecca Bianca |
| Assunto: | Green bonds ESG African bond market Currency denomination Sustainable finance Financial advising Local currency Hard currency Greenium Currency risk Emerging markets Africa Quantile regression OLS regression DZ bank Sustainability bond Sustainability-linked bonds |
| Ano: | 2025 |
| País: | Portugal |
| Tipo de documento: | dissertação de mestrado |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | Universidade Nova de Lisboa |
| Idioma: | inglês |
| Origem: | Repositório Institucional da UNL |
| Resumo: | This thesis examines the role of currency denomination in African Green Bonds, focusing on yield differentials and the presence of Greenium. Empirical analysis reveals no significant evidence of Greenium but confirms a robust currency premium, with Hard Currency Bonds yielding lower rates than Local Currency Bonds. Insights from interviews with DZ Bank and DBSA highlight the importance of addressing default risk, illiquidity, and strategic trade-offs between currencies. While Green Bonds show limited potential to mitigate currency premiums, the findings underscore the need for tailored advisory strategies. DZ Bank is positioned to support sustainable finance growth through active engagement in Africa. |
|---|