World sustainable bond issuance is surging, with market commentators anticipating 2022 to be a report yr regardless of world issuance of conventional bonds stagnating.
In response to S&P World Rankings, issuance of sustainable bonds – together with inexperienced, social, sustainability (GSS) and sustainability-linked bonds – will surpass $1.5 trillion this yr. Moody’s, in the meantime, is forecasting $1.35 trillion in 2022, following a report 2021 when sustainable bond issuance grew 64% year-on-year to just about $1 trillion.
A number of elements are fueling this, together with investor demand, regulatory developments to assist standardise the market and the need amongst issuers to diversify their investor base and probably get hold of beneficial pricing phrases.
Throughout the sustainable universe, sustainability-linked bonds would be the fastest-growing phase of the market, adopted by inexperienced bonds, believes S&P World Rankings – which additionally foresees sustainable bonds accounting for round 17% of whole 2022 world bond issuance, up from lower than 5% three years in the past. On the identical time, social and sustainability bonds will proceed to develop as they diversify into new initiatives in help of the 2030 Sustainable Growth Targets (SDG) agenda.
These traits are the premise for the fifth annual sustainable finance ballot by FinanceAsia and ANZ. See extra particulars right here.
Based mostly on the respondents up to now, a number of the interim outcomes embrace:
• Over 90% of traders and issuers say GSS points are being thought of inside their organisations and built-in into their technique
• Practically half (44%) of traders and issuers say Covid-19 has led them to have a larger give attention to sustainable finance and GSS devices; an analogous quantity says the pandemic hasn’t modified their present focus
• Of the 80% of traders already investing in GSS bonds and loans, renewable power is the preferred sector, adopted by well being and aged care
• Investor diversification and alignment to sustainability targets are the 2 foremost drivers for issuers in the case of GSS devices
Buyers and issuers throughout Asia Pacific are invited to take part on this fifth annual FinanceAsia / ANZ sustainable finance ballot.
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