Green finance instruments: Exploring minibonds issuance in Italy

Abstract

In the context of green finance, minibonds play a crucial role. This financial instrument was introduced in 2012 as a valid alternative to bank credit for corporate financing, aimed mainly at small and medium-sized enterprises. Minibonds also represent useful support for implementing the ecological transaction agreed upon in COP 21, held in 2015 in Paris. Indeed, as of 2017, this instrument has been expanded from an environmental perspective by allowing the issuance of green minibonds. This article contributes to the debate on minibonds and the companies issuing them. Specifically, it proposes a cluster analysis approach for comparing the issuance level of minibonds in 2016 and the subsequent performances of the issuing companies in the triennium 2017–2019. Performance is divided into three macrocategories: profitability, productivity, and growth opportunities. The results suggest a nonlinear connection between the variables of interest, showing heterogeneous effects of minibonds on performance. However, the statistical data analysis seems to establish a positive relationship between minibonds' issuance level and companies' performance.