The global issuance of sustainable bonds, including green bonds is expected to reach $850 billion in 2021, registering an annual increase of 59 percent from last year as investor demand soars up, as reported by Moody’s Investors Service.
The global issuance of sustainable bonds in the second quarter saw an increase of 66 percent from the earlier year to $189 billion. Out of the entire amount, $94 billion accounted for green bonds, $46 billion in social bonds, and a quarterly record of $49 billion in sustainability bonds.
Matthew Kuchtyak, Assistant Vice President-Analyst at Moody’s told the media, “Following record first-half issuance, we now forecast about$450 billion of green bonds and US$200 billion each of social bonds and sustainability bonds this year. We still expect sustainable bonds to account for around 8-10 percent of global debt issuance in 2021, as issuers across all segments of the market continue to explore how they can link their capital markets activities with their sustainability objectives.”
Additionally, sustainability-linked bonds and loan volumes also continued to grow. Experts mentioned that after a quarterly record of $31 billion in the second quarter, sustainability-linked bond volumes could reach $100 billion in 2021. This would bring overall sustainable bond volumes near $1 trillion for an entire year.
Global assets focused on environmental, social and governance criteria are expected to reach $53 trillion by 2025, according to media reports.