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Laxman Pai, Opalesque Asia:

Global issuance of green, social, sustainability, and sustainability-linked bonds (collectively GSS+) reached US$4.2 trillion in June and will likely hit $5 trillion at the end of the year, said a study.

According to Climate Bonds Initiative, a UK-based group focused on climate change, H1 2023 saw USD448bn of aligned GSS+ debt captured in H1 2023, a 15% year-on-year (YoY) decline compared to H1 2022.

"Despite a difficult macroeconomic and geopolitical terrain slowing issuance in the last two years, the market is on track to hit $5trillion combined issuance at the end of the year," the report reiterated.

Green was the predominant theme in H1 2023, with 62% of the total aligned GSS+ debt (USD278.8bn). Financial corporates contributed the largest share of aligned green volumes with 29% (USD79.6bn) including USD5.5bn from Intesa San Paolo spread over five deals in GBP and EUR.

Non-financial corporates including Orsted (four deals worth EUR2.0bn/USD2.2bn), Mercedes (two bonds worth EUR2.0bn/USD2.2bn), and EDP (two deals worth EUR1.75bn/USD1.9bn) contributed to volumes of USD68.7bn from that segment of the market (25%). Sovereigns were the third largest issuer type, with nine countries contributing to its total green volume of USD52.4bn (19%).

Aligned GSS+ volume originating from the United States fell sharply in H1 2022 to USD39.8 billion, compared to USD65 billion in H1 2022. The anti-ESG political rhetoric in the United ......................

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