$141bn green bonds hit record high

Green bond issuance is set to reach a new annual high this year as more than $140 billion of green bonds were issued globally. Demonstrating increased investor appetite for ethically labelled bonds, this is 31% higher than the $107bn issued last year.

Analysis from global law firm Linklaters published today, shows that China is the largest source of green bonds this year with 45 issuances worth $28.5bn, a 59% increase compared to the $17.8bn issued last year. The United States of America comes in second place with 37 issuances worth $13.7bn, followed by France with 17 issuances worth $13.6bn.

Top 20 countries by value of issuances:

Domicile Nation

US$ Mil

Number of Issues

China

28,535.11

45

United States of America

13,727.54

37

France

13,639.13

17

Netherlands

7,880.71

8

Australia

7,000.53

8

Germany

6,748.28

14

Luxembourg

6,299.25

17

Belgium

6,211.34

3

Sweden

5,526.14

61

Canada

5,176.42

15

Spain

4,564.11

5

Japan

4,449.97

26

United Kingdom

4,339.76

10

Indonesia

3,989.85

5

Republic of Ireland

3,436.29

1

Norway

3,364.96

4

Italy

2,936.49

3

Hong Kong

2,671.26

11

South Korea

1,795.73

5

Philippines

1,668.44

6

Green bonds are used to finance renewable power and other environmentally friendly opportunities, including clean energy, renewables and infrastructure projects.

Amrita Ahluwalia, Capital Markets lawyer at Linklaters, says: “Activity this year has soared past previous expectations showing sustained global momentum in the green bond market. We’ve seen a number of sovereigns come to the market this year, including Ireland, further demonstrating the appeal of the product.”

She  notes that: “Alongside this increased activity, we are seeing increased debate around what constitutes a green bond, with various shades of green emerging. Investors want to ensure they are committed to projects that will make an environmental difference, so we may see the evolution of green bond markets as a result of active regulatory involvement.”