Sustainable finance update: May 2021

A look at what’s been happening in the sustainable finance market – in Australia and abroad.

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Sustainable finance market overview – 2021 YTD

  • US$469.1bn of sustainable debt has been issued in the year to date, more than double the US$175.6bn issued over the same period in 2020, according to Bloomberg New Energy Finance (BNEF).
  • Green Bonds comprised over 38% of the sustainable debt market at US$179.1bn, more than double the US$75.8bn issued over the same period in 2020.
  • Sustainability-linked loans doubled in growth with issuance volume of US$98.4bn compared to US$41.4bn issued over the same period in 2020.
  • Social bonds grew over four times with issuance volume of US$97.6bn compared to US$21.8bn issued over the same period in 2020.
  • Sustainability-linked bond issuance has surpassed the total annual 2020 issuance with volume of US$19.1bn compared to US$11.4bn.
  • Sustainability bond issuance of US$62.1bn is close to surpassing 2020’s total annual issuance of US$70.3bn.
  • Green loan issuance totalled US$12.9bn, a decrease from US$23.2bn issued over the same period in 2020.
  • According to Refinitiv Deals Intelligence, sustainable finance bonds set an all-time quarterly record in Q1 2021. As a percentage of global debt capital markets proceeds, Sustainable Finance bonds accounted for a record 11.5% of first quarter activity, up from 9.5% during fourth quarter 2020.

 

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