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An Explosion of ESG Bond Issuance. ESG-labeled bond issuance surged to new heights in 2021. Greenbonds, which fund particular projects, continued to dominate. But issuance of social, sustainability and sustainability-linked bonds—which reference specific key performance indicators, or KPIs—grew fastest (Display).
The Government of Hong Kong announced today the completion of a greenbond issuance, raising $5.75 billion in a triple-currency offering, with bonds denominated in US dollars, Euros and Renminbi (RMB). According to the Hong Kong Monetary Authority, the offering marks the largest ESG bond issuance in Asia to date.
The Government of India will issue its first-ever greenbond this month, according to an announcement by the Reserve Bank of India, with plans to raise approximately US$2 billion to support green infrastructure projects aimed at reducing the carbon intensity of the economy. Last week, the government of Hong Kong raised US$5.8
Global issuance of labelled sustainablebonds including green, social, sustainability, sustainability-linked, and transition bonds is anticipated to again reach around $1 trillion in 2025, according to a new forecast released by Moodys Ratings, as headwinds including political changes from the new U.S.
Issuance volumes of green, social, sustainability and sustainability-linked (GSSS) bonds rebounded strongly in Q1 2023, resuming double-digit growth trends after falling 18% in 2022, according to a new report from Moody’s Investors Service. trillion in 2021. Non-financial corporate issuance in the U.S.
Sustainablebond issuance outperformed the broader market in the second quarter of 2022, reaching a record 15% of global total issuance, according to a new report from Moody’s ESG Solutions. Moody’s maintained its forecast for stronger GSSS volumes in the second half of the year, and its $1 trillion full year estimate.
Global issuance of labelled sustainablebonds – including green, social, sustainability, sustainability-linked, and transition bonds – declined sharply in the second quarter of 2024, as fewer new issuers entered the market and issuers contend with regulatory scrutiny, according to a new report released by Moody’s Ratings.
Issuances of green, social, sustainability and sustainability-linked (GSSS) bonds fell in the third quarter of 2022, but continued to remain more resilient than the broader bond market, growing to a record 16% share of the market in the quarter, according to a new report from Moody’s Investors Service.
Issuance volumes of green, social, sustainability and sustainability-linked (GSSS) bonds rebounded sharply in Q1 2024 over the prior quarter, rising 36% to $281 billion, up from $207 billion in Q4 2023, according to a new report from Moody’s Investors Service.
In addition to volume growth, S&P also anticipates an expansion in bond types, with a more prominent presence for transition and blue bonds, even as greenbonds continue to dominate. For 2024, the report forecasts GSSSB issuance volumes of $0.95 trillion to $1.05 trillion, growing slightly from $0.98
By region, Moody’s anticipates that Europe will maintain the largest share of GSSS volumes, after accounting for 45% of issuance in 2023, with sustainablebonds representing 20% of total bond issuances, and growing to $428 billion in 2023 from $411 in 2022, as sustainability issues remain top of mind for issuers.
For the second quarter, GSSS bond issuance volumes of $258 billion were flat over the same period last year, recovering from a sharp decline in the second half of 2022, and significantly outperforming the broader market, with GSSS bonds rising to 15% share of global bond market issuance.
Aeroporti di Roma (ADR), the manager and developer of Rome Fiumicino and Ciampino airports, announced the completion of a new 10-year €400 million sustainability-linked bond (SLB), with the cost of debt on the bond tied to a series of the airport operations group’s climate-related goals.
In addition, the OMXS30ESG is also designed to be used for structured products, such as warrants, index bonds options, exchange traded funds and other non-standardized derivatives products. In November 2021, Nasdaq expanded its ESG derivative offering with the listing of options based on the OMXS30ESG Index.
Moody’s forecasts the GSSS bond market to grow 10% in 2023 to issuance of $950 billion, after declining 18% in 2022 to $862 billion, from a record $1.05 trillion in 2021. Despite the 2022 decline, the sustainablebond market substantially outperformed the global bond market, which saw issuance volume fall by 27%.
New Climate Bonds Initiative report highlights growth in GSS bond issuance in 2021. . Climate Bonds’ newly released annual report highlighted the discrepancy in greenbond issuance volumes between developing and emerging markets last year. . trillion, the Climate Bonds report said. Looking ahead .
Climate Bonds Initiative’s (CBI) Market Intelligence report found green, social, sustainability, sustainability-linked (SLB) and transition bonds (collectively known as GSS+) had fallen from over a record US$1 trillion in 2021 to US$863.4 Of that total, sustainabilitybonds contributed US$166.4
Despite development barriers, opportunities are emerging for investment in sustainable assets in growing market. Africa has seen rapid growth in issuance of green, social, sustainability and sustainability-linked (GSS+) bonds and could prove enticing to investors, in spite of existing challenges.
The research, titled ‘ Bonds That Build Back Better ’, predicted a “silent revolution” in the fixed income markets over the next 5-10 years as bond investors increasingly direct capital to the transition to a low carbon economy. ESG bond issuance reached US$1 trillion in 2021 for the first time according to Refinitiv.
Sustainabilitybonds and loans achieve scale One of the greatest challenges for the impact ecosystem has been the creation of scalable instruments that can attract institutional investors into projects that create financial returns alongside environmental and societal benefits.
Moody’s cited challenges including short-term post-pandemic support for businesses and households, long-term sustainable development challenges, including climate risk mitigation, and gradual, uneven recovery in revenue streams. trillion by the end of 2022. But issuance by sovereigns will grow from a low base, especially in Asia.
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