Green bonds drive global ESG debt market

Green bonds are driving the global ESG debt market, according to a new report by Bloomberg Intelligence

The report shows that issuance in 2023 so far has risen 8% from the same period of 2022 with more than $100 billion of global sustainable debt issued. The green bond market now totals $505 billion, or 48% of total sustainable issuance.

Social bond issuance was also slightly higher year-to-date (up 2%), while total sustainable issuance is down 16%, Total issuance for the month of September was down 18% from a year earlier, while the total for Q3 was $255 billion, down 32% from a year earlier

The International Bank for Reconstruction and Development was the largest issuer in Q3, with more than $13 billion dollar-equivalent of debt using sustainability and green bonds across seven different currencies, coming to market every month in 2023. The UK was the third largest issuer from July to September, selling $6.2 billion of green bonds, while remaining issuance in the top 10 included sustainability-linked and green loans, along with social and green bonds. Health care remains the weakest sector, with only $6.35 billion so far in 2023, down more than 51% the year-earlier period.

Christopher Ratti, Senior ESG Analyst at Bloomberg Intelligence, says, “The euro increased to 34% of sustainable debt issuance in September after a weaker July and August. It remains the favourite currency through the first nine months of 2023, with more than $400 billion dollar-equivalent accounting for 38% of the total. The dollar is No. 2 for the year at 30%, with $312 billion though this is down roughly 6% from a year ago. Yuan increased on a year-to-date basis, with 8% of total issuance, up from 6% a year ago.