Why should investment banks issue green bonds rather than traditional bonds ? BNP Paribas case / Léa JEAN-BAPTISTE / 2021

Titre : Why should investment banks issue green bonds rather than traditional bonds ? BNP Paribas case Type de document : Mémoire Auteurs : Léa JEAN-BAPTISTE, Auteur Année de publication : 2021 Importance : 33 p. Note générale : Pour accéder aux fichiers PDF, merci de vous identifier sur le catalogue avec votre compte Office 365 via le bouton CONNEXION en haut de page. Langues : Anglais (eng) Mots-clés : Management ECOLOGIE ; INVESTISSEMENT ; OBLIGATION Résumé : Citigroup made a 10-year commitment to finance and facilitate $100 billion in activities that provide environmental benefits and reduce the impacts of climate change, beginning in 2014. On May 11th, 2020, the investment bank launched its first USD-denominated green bond. According to Jamie Forese, the President of Citigroup and Head of the Institutional Clients Group “This transaction represents an important step in expanding Citi’s commitment to sustainable growth. This bond also further enhances our green bond expertise, strengthens our partnerships with clients around the world and responds to increasing investor interest in sustainable finance.”. Citigroup went one step further when it announced that it will combine three of its investment-banking groups as part of its push to help large corporate clients transition away from using carbon. Jane Fraser, the new CEO arrived in March, made it clear that her objective was that the bank would achieve net-zero greenhouse gas emissions in its financing activities by 2050.These objectives are in line with the evolution of our current financial system toward a more sustainable one. Indeed, according to the European Commission, sustainable finance refers to the process of taking environmental, social and governance (ESG) considerations into account when making investment decisions in the financial sector. It will lead to more long-term investments in sustainable economic activities and projects.The transition to a sustainable global economy requires scaling up the financing of investments that provide environmental and social benefits. The bond markets through green bonds play an essential role in attracting private capital to finance these global needs. Green bonds are quite similar to traditional fixed-income bonds, the main difference is that their proceeds are used to finance clean projects. Therefore, the green bond market aims at unlocking private capital to finance climate or environmental solutions. Thus, investment banks should take part in green bonds issuance if they want to gain expertise and to help the transition of our financial system. However, they can be reluctant to issue them for several reasons including the high risk of greenwashing, and the complex process of issuance. In this dissertation, we will try to demonstrate why investment banks should issue green bonds rather than traditional bonds. Programme : MSc Finance, Investment & Wealth Management Permalink : https://cataloguelibrary.neoma-bs.fr/index.php?lvl=notice_display&id=538609