Moody’s: Sustainable bonds issuance to top US$850bil


The rating agency now anticipates global issuance of about US$450bil of green bonds and US$200bil each of social bonds and sustainability bonds.

KUALA LUMPUR: Moody’s Investors Service expects green, social and sustainability bond issuance to reach combined US$850bil for 2021 after record first-half volumes.

The rating agency now anticipates global issuance of about US$450bil of green bonds and US$200bil each of social bonds and sustainability bonds.

“Volumes across the three segments totaled US$427bil in the first half of the year, more than double the same period last year, as market momentum continues to be exceptionally strong,” it said in its report.

Moody’s said sustainable bond issuance totaled US$189bil in 2Q of 2021, with US$94bil of green bonds, US$46bil of social bonds and US$49bil of sustainability bonds.

It pointed out sustainability-linked bond and loan volumes continue to surge.

Sustainability-linked bonds achieved a new quarterly record of US$31bil in the 2Q, more than three times higher than the US$9bil issued in 1Q.

“With the market's exceptionally strong growth in recent quarters and growing market interest, sustainability-linked bond volumes could top US$100bil for all of 2021.

“Taken alongside use-of-proceeds sustainable bonds, this means overall sustainable bond volumes could approach US$1 trillion in annual issuance this year,” it said.

Moody’s said 2Q was also another record quarter for the sustainability-linked loan market, with US$156bil, which was a 54% growth over 1Q.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights
   

Next In Business News

MUI Group's PMC to buy 51% stake in A&W Malaysia
Yinson reports third straight quarterly earnings growth
KPower posts RM37.4mil net profit in FY21, despite Covid-19 setbacks
FBM KLCI broadly higher on bargain-hunting activities
BNM's international reserves at US$116.2bil as at Sept 15
China stocks end higher, Evergrande's assurances lift real estate firms
Maybank, UOB to jointly underwrite RM2bil Islamic facility for Malayan cement
DFIs provide micro-SMEs with financing totalling RM8.1bil
Oil prices rise on tight supply, renewed risk appetite
Citi Malaysia bags multiple banking awards

Stories You'll Enjoy


Vouchers