Global Sustainable Debt
Interesting data on global sustainable debt from BloombergNEF. A few observations:
- Sustainable debt volumes are growing fast (30% in 2020) despite COVID-19 showing that sustainability continues to rise up on the agenda for investors, businesses and governments.
- Explosion in social bonds issuance (sevenfold jump) was driven by investor appetite for products that addressed the coronavirus pandemic and the recession (mostly from government agencies and supranational bodies)
- Sustainability bonds were another growth factor doubling in volume
- Green bonds is the largest part of sustainable debt representing almost half of it and increased by 13%
- Both sustainability-linked loans and green loans saw 15% reduction in issuance, mostly impacted by economic recession