Page 306 - 2019 6th AFIS & ASMMA
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» Panelist | Luca Bertalot given that borrowers are not identical; a case for young couple will be
I think France made a major issue a few months ago. Belgium is different from that of a middle-aged couple, who are likely to have a
preparing or is already out into the market. Every single government different level of affordability. So, the intervention of the state, the city or
seems to consider issuing green bonds, of which the process is in the the region can be different in each case. Therefore, we need to plan this
pipeline, or under discussion. I think they are all reflecting on this, so it's initiative together with the authorities, in order to identify a clear target
now, I will say, also a government discussion. My point is, it is not just and devise clear solutions for all different stakeholders and borrowers, in
a market looking on this, but the climate bond parameters criteria have implementing our strategy. Session I
been implemented at the government's level as well.
» Moderator | You Tay Lee
» Moderator | You Tay Lee Maureen, are green bonds safer or better investment alternatives than
Yet I have always wondering; where is the governance? We'll see. non-green bonds? Could that be a key driver for investors to buy the
Meanwhile I have another question from the floor. You show that bonds?
energy savings get capitalized into house prices. Doesn't this undermine
affordability for future buyers?
» Panelist | Maureen Schuller
Well, I think that depends pretty much, because if you consider the
» Panelist | Luca Bertalot example of covered bonds, and if you select a pool of energy efficient
I will say it also improves the disposable income of the family in it, mortgage loans, that particular pool of energy efficient mortgage loans
while it is true there is a slight increase of the house price, which reduces gets added to the same collateral pool, as the non-energy-efficient
the affordability. Just taking the example of my Danish numbers; a family mortgage loans securing the covered bonds. So ultimately, the buyer of
could have around 100 euros of discount in the monthly expenses, so the green covered bonds buys, essentially, a risk to the same pool of assets
it impacts both sides, but there is a kind of compensation. I think the as the buyer of the gray covered bonds. So, I don't think at this stage, you
probability of default effect is quite important in terms of disposable could argue on a bond level, there is actually a risk diversification versus
income, and there is a trade-off, of course. But it would be different on green versus non-green, and for that particular purpose, buyers will buy
case by case, house by house. the green bonds over the grey bonds. I think green investors buy green
bonds, simply because of the proceeds allocation to energy efficient or
sustainable loans.
» Moderator | You Tay Lee
Yes, I think a virtuous circle would be a key, where one increases the
other and the other way around. I hope it works. » Moderator | You Tay Lee
I see. I catch there is another question. Which party is best suited to be
a guarantor for EE renovation in this model?
» Panelist | Luca Bertalot
Sorry to add another comment. But that is why it is important to
have a combination of intervention from the state and in the market,
308 2019 6th AFIS & ASMMA Annual Meeting 309
