Monday 12 February 2018

Green bonds issuance ‘to reach record high in 2018’

Global green bonds issuance is set to grow by around 60% to $250 billion (£181bn) this year.

That would far exceed the record $155 billion (£112bn) of green bonds issued last year, according to the latest assessment from Moody’s Investors Services.

The sectors that have traditionally played a large role in this market such as financial and non-financial corporates, which represented 36% of the total in 2017, are to continue to lead.

In addition, emerging market issuers and municipalities are expected to see “considerable growth” in 2018.

Matt Kuchtyak, Lead Author of the report said: “Developed market corporates and banks will remain active issuers. Emerging market issuers, sovereigns, municipals and green securitisations will also provide important engines of growth.”

The report projects sovereign green bond transactions will see a major upturn, including potential financings from the governments of Indonesia and Belgium.

It adds some in the emerging markets such as Nigeria may also look to green bonds as an attractive means to financing large-scale climate adaptation investments.