Regency Centers wins price advantage with $250m green bond

Regency Centres mall for new website
By David Rothnie, Jon Hay
15 May 2014

Regency Centers, a shopping centre developer, this week became the first non-bank company in the US to issue a specially labelled green bond. It was the first green bond where the company appeared to gain a convincing pricing advantage, relative to issuing a normal bond. That is a breakthrough, as until now many market participants have denied that this could, or even should, happen.

In the early stages of the market’s development, issuers and investors effectively observed a truce, agreeing that green bonds should be priced in line with the issuer’s ordinary bonds. This suspension of normal supply and demand allowed investors to claim they were not giving up any yield to ...

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