Green bonds, social bonds, sustainability bonds, transition bonds, performance-linked instruments, impact loans: Xavier Goénaga Butèle, Knowledge Manager at Finance Active, analyses ESG trends in the investment and issuance market in an interview published by the French financial magazine Option Finance on June 28, 2021. He also discusses the new management challenges that financial departments are facing related to this growing trend.
What are the trends in the ESG investment and issuance market?
“For a long time, financing demand from investors and issuers has been almost exclusively for green bonds. According to the Climate Bond Initiative, at the global level, the cumulative amount of green bonds – since the birth of this market, estimated in 2015 – was more than $1,100 billion at the end of 2020. Regarding social bonds and sustainability bonds, they were each worth just over $300 billion. However, the green bond market is tending to stabilize, while the sustainability bond and social bond markets were multiplied respectively by more than 2.5 and 8 between 2019 and 2020. This growth is linked in particular to the economic situation and the type of issuer. For instance, social bonds are essentially used by public organizations (governments and international institutions), which were required to finance active social policies during the Covid-19 crisis. […]”
Read the original version in Option Finance (French content): Financements durables : la nouvelle donne des directions financières
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