Variables influencing the issue size of green bonds in the investment portfolios of Rabobank

The investment office of Rabobank invests part of their portfolio in green bonds. Green bonds are bonds that are used to finance green projects, assets or business activities and are a relatively new fixed income instrument. Rabobank would like to explore the market in green bonds into further detail. This research focuses specifically on the variables influencing the issue size of green bonds issued in the period between 2019 and 2023. By doing literature research and applying ordinary least squares regression, the variables affecting issue size are determined. The variables showing a positive effect are maturity, issuer rating, firm size, and capital structure, whereas the variables showing a negative effect are bond rating, revenue growth, return on assets and the real-estate sector.