New data from AFME shows a sharp fall in sustainability-linked bond issuance in Q1 2024 although ESG bond issuance was up slightly.

European ESG bond and loan issuance increased in Q1 by 2% compared to Q1 2023. The increase was primarily driven by sustainability-linked loan origination (+13% YoY). However, sustainability-linked bond issuance fell by 34% YoY to €7.8bn.

The biggest ESG bond issuers were German followed by French issuers with 50% of sustainability-linked loans was originated in Germany and a quarter of ESG bonds was issued in France.

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