Green Bonds: 2019, an outstanding year

Global green bond issuance is projected to hit more than USD 250bn in 2019 thus shaping up into the best year ever for green bonds, while market trends indicate that issuance might peak towards USD 350bn+ in 2020.

Furthermore, with the Paris Agreement and UN Sustainable Development Goals as the intensive catalysts, experts anticipate that there should be no strong limits on the rise of future emissions and use of green bonds.

Recent growth has been driven by players from new sectors such as mining, tanker industry and airports as well as by relatively developed country markets, including Germany, Sweden and the USA.

New transactions requiring challenging sectors to be evaluated demand more clarity and definitions and an ongoing dialogue on how to use various labels and the differences between green and transitional in a market that grows fast due to an increasing investor demand and requires solid market foundations.

According to Green Bonds Initiative 2019 issuance as of 13th December reached USD235.7bn, bringing the total global issuance to USD753bn.[1]

In Latin America and the Caribbean, Patrimonio Autónomo Titularización, launched a sustainability bond, the first of its kind by a Colombian development bank in 2019. The proceeds will be will be used by the concessionaires to purchase compressed natural gas buses to operate on four “corridors” of TransMilenio’s BRT system, the vehicles complying with EURO VI emissions standards.

Another relevant initiative on an emerging theme is that of Italian Bank Intesa Sanpaolo that achieved a EUR750m (USD831m) deal that will finance circular economy initiatives across several sectors.[2]


[1] Climate Bonds Initiative. 20 December, 2019.

[2] Climate Bonds Initiative. 20 December, 2019.


Sources:

-Climate Bonds Initiative (20 December, 2019). Market Blog #37 – 20/12/19.

-Climate & Sustainable Finance. The Green Bond December 2019. 17 December 2019

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