One year after the Sustainability Linked Bond Principles were published, the target-based fixed income instrument is seeing issuance accelerate. Market participants warn, however, that some current issues lack substance. Ahren Lester reports
Sovereign issuance is a key component of the sustainable bond market, but Ahren Lester asks why no country has yet taken the sustainability-linked bond route
Efforts to standardise green, social and sustainability bond impact data are gaining traction, but widespread comparability remains elusive, an Environmental Finance webinar heard. Michael Hurley reports
Sustainability-linked loans and bonds may have different sustainability performance targets and pricing mechanisms from one another, but innovative new pricing structures may increase the risk of 'ESG-washing' across the whole asset class, Lori Shapiro writes
This free-to-download report includes graphics and data from the Environmental Finance Bond Database to illustrate the main trends in the market in 2020 together with forward-looking commentary from leading market commentators
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This free-to-download report includes graphics and data from the Environmental Finance Bond Database to illustrate the main trends in the market in 2020 together with forward-looking commentary from leading market commentators
Sustainability-linked bonds (SLBs), which were pioneered by Enel in late 2019 saw slow uptake through to the end of the first half of 2020, but after the ICMA published guidelines in June 2020 both the volume and value of SLBs have risen steadily. The value of SLBs issued in the first quarter of 2021 was roughly equal to the value of SLBs in the whole of 2020 and the value of SLBs issued in Q2 2021 was over double that, bringing total issuance of SLBs to over $40 billion.
Corporates have accounted for nearly 97% of the total value of SLBs issued so far. Geographically, Europe has dominated, with over 65% of the value of SLB market, but there has been strong uptake in South America, with the region being the second largest issuer of SLBs both in terms of value and volume of bonds issued.
Data was taken as of 24 June 2021.
For comprehensive details about all green, social and sustainability bonds, please visit the Environmental Finance Bond Database. For more information, a demo or a free trial please contact scott.davis@fieldgibsonmedia.com
