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Laxman Pai, Opalesque Asia: Green, social, sustainable, and sustainability-linked bond (GSSSB) issuance has continued to climb throughout 2023, with total issuance on track to reach between $900bn and $1trn by the end of the year, said a study.
That is according to new data this week from S&P Global Ratings, which shows that despite stagnating global bond issuance, the proportion of GSSSBs in the market continues to grow, with issuance forecast to rise by between five and 17 percent year-on-year.
In total, GSSSB issuance is expected to account for 14-16% of total bond issuance throughout the year, having captured 13 percent of all issuances in the first half of the year.
Total cumulative issuance of GSSSB passed the $4trn mark in June 2023, less than one year after surpassing $3trn, S&P said.
"We anticipate issuance of sustainability-linked bonds will decline in 2023 as questions regarding the credibility of targets persist, while green bonds will continue to dominate the GSSSB market, building on a record level of issuance in the first half of the year," the study noted.
Meanwhile, green bonds are likely to continue to dominate, as sustainability-linked bonds falter. Green bond issuance during the first half of 2023 reached $310 billion, marking the highest half-year total since the inception of the green bond market.
Green bonds have comprised 59% of the GSSSB market in 2023 so far. "We predict they will remain prevalent through the rest of the year," ...................... To view our full article Click here
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