Credit Ratings of Issuers of Green Debt Instruments

Frydrych, Sylwia

doi:10.35808/ersj/2570

Cited by 3 publications

(1 citation statement)

References 13 publications

(14 reference statements)

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“…On the other hand, the lowest average number of issues was recorded by issuers with only one Fitch rating. Research conducted by Frydrych (2021) on green bonds confirms the required number of ratings for the average value of the issue. While for green instruments it is sufficient for the issuer to have two credit risk assessments also for the highest average value of the issue.…”

Section: Discussionmentioning

confidence: 75%

The role of credit rating of the ESG debt instruments issuers

Frydrych

2023

EiS

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The aim of this article is to assess whether having a creditworthiness assessment from more than one credit rating agency by issuers of ESG debt instruments affects the number of issues and the average amount issued. The empirical research was carried out using the observation method and the analysis of source documents. In the analysed period, 53.38% of issuers received ratings at least from one CRAs as S&P, Moody’s, and Fitch. The results of the conducted research indicate that the number of ESG debt instruments and the average issue amount were affected by the number of ratings given to the issuer. A database collected from Refinitiv Eikon for the period between 2012 and 2021 allows us to conclude that it is enough to have two credit ratings. The conclusions of this study can be used in the process of obtaining financing for ESG projects.

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Section: Discussionmentioning

confidence: 75%

The role of credit rating of the ESG debt instruments issuers

Frydrych

2023

EiS

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Investing in our planet: Examining retail investors' preference for green bond investment

Azad,

Tulasi Devi,

Mishra

2024

Bus Strat Env

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The green bond has emerged as an important financial instrument to advance environmentally friendly projects. While institutional investors have shown ample interest in green bonds, retail investors have lagged in their adoption. This study intends to examine the determinants of retail investors' attitude and intention toward green bond investment, utilizing the theory of planned behavior as the fundamental model and incorporating several context‐specific factors. Data from 506 Indian retail investors, representing the majority of Indian states and union territories (UTs), were collected through multi‐stage stratified random sampling. The PLS‐SEM method, coupled with artificial neural network (ANN) analysis and fuzzy set qualitative comparative analysis (fsQCA), was employed to test the hypothesized relationships, ensure the robustness of outcomes, and derive important practical insights. The findings suggest that intrinsic factors (perceived behavioral control and attitude) are superior predictors of investors' behavioral intentions relative to external factors (government policy support and social influence). Further, for green bonds to receive favorable evaluations from investors, they should display adequate financial cum environmental performance. Investors' attitude is significantly influenced by issuers' ratings and their willingness to pay premiums. Environmental concerns and perceived risk also influence investors' attitude toward green bonds, albeit with relatively lower strength. This study holds significance as it offers crucial implications for researchers, market participants, policymakers, and regulators involved in the development of the green bond market.

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