Green, social and sustainability bond issuance is set to jump by 24 per cent in 2020, according to new data from Moody’s Investor Service Inc.
Moody’s is predicting issuances will climb to US$400 billion by the end of the year, up from US$323 billion in 2019.
More specifically, the research anticipates green bond issuance will reach $300 billion, while social and sustainability bond issuance will reach $25 billion and $75 billion, respectively.
“Across the financial sector, market participants are increasingly integrating environmental, social and governance considerations and sustainability,” said Matthew Kuchtyak, an analyst as Moody’s, in a press release. “Governments and regulators are also providing greater structure and clarity to the sustainable finance market as their focus on climate change and sustainability grows.”
In addition, alternative-sustainability bonds like transition bonds will also see an acceleration in growth, the research found. However, a lack of clarity on definitions may contribute to their growth being uneven over the near term.