Green bond issuance set for record year

Green bond issuance is set for another record year according to research by Linkaters.

Over 350 green bonds issuances launched since the start of 2020, according to analysis by global law firm Linklaters. $168.2 billion has been raised by companies, financial institutions and governments up from $128.3 billion for the same period last year

Financial services, energy and real estate biggest sectors for green bonds issuances
A total of 366 green bonds issuances have been launched globally since the start of the year with a total of $168.2 billion raised by companies, financial institutions and governments, according to new analysis by global law firm Linklaters. Following a record-breaking year in 2019 with 504 issuances and $187.8 billion raised, the data suggests that 2020 has seen continued appetite amongst investors for sustainable investments.

Finance, energy and real estate fuel growth
The financial services industry, including banks, asset managers and credit institutions, have led the way with green bonds issuances in the first nine months of the year, raising a total of $56.1 billion in 144 issuances. Energy and real estate follow with $27.7 billion and $15.8 billion raised in these sectors respectively.

Amrita Ahluwalia, Capital Markets lawyer at Linklaters, commented:
“Investors continue to look for ways to be more sustainable. This has enabled green and sustainable bonds to gain significant market traction. Regulatory initiatives, like the EU Green Bond Standard, will go some way in setting market-wide principles to help prevent greenwashing which will likely prompt even greater appeal once adopted.”
Meanwhile, governments and international and national agencies have embarked on record levels of debt-raising to finance green projects, with $52.5 billion raised in 97 issuances, compared to $39.4 billion for the same period in 2019.

Sweden takes top position in Europe
Sweden has seen the largest number of green bond issuances in Europe, with a total of 61 so far this year raising $7.1 billion, with nearly a third (62%) taking place in the real estate sector. In 2019, it ranked the highest country globally for the number of green bonds issuances, spurred on by the government’s ambition to transform Sweden into one of the first fossil-free welfare countries.
Elsewhere, the US tallied up a total of 69 issuances raising a total of $29.0 billion, followed by Japan with 55 issuances with $5.9 billion.