
Borrowers redefine green repo, repurposing non-green bonds
Collateralised repo transactions that support sustainability can be cheaper than green bonds or loans

Firms looking to fund environmental, social and governance projects are turning to ESG-friendly repurchase agreements – green repo – and notably to the type of trade that sidesteps the need to issue a green bond or loan.
Past discussions of green repo have focused on the nature of the underlying collateral, arguing that green repo should use a green bond.
But now, firms are starting to put the proceeds of conventional bond repo to ESG-friendly uses – irrespective of the ‘greenness’ of the
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