Vornado’s green bond breaks price taboo

Vornado building for new website
By Jon Hay
12 Jun 2014

Vornado Realty, the New York-based office developer, has become the second US company to launch a themed green bond — and proved that such deals can be priced tighter than an issuer’s ordinary debt, writes Jon Hay.

The $450m five year bond, structured by Bank of America Merrill Lynch, was priced about 10bp-15bp through Vornado’s secondary curve — a degree of negative new issue premium that it is hard to imagine being possible without the deal’s green allure.

Themed green bonds are normal debt, but the ...

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