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    Home > Chemicals Industry > International Chemical > Global sustainable debt issuance reached a record high of US$732.1 billion in 2020

    Global sustainable debt issuance reached a record high of US$732.1 billion in 2020

    • Last Update: 2023-01-03
    • Source: Internet
    • Author: User
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    Sustainable debt hit a new record for the largest issuance in a year in 2020, taking into account environmental and social purposes, bonds and loan types, with total issuance in 2020 at US$732.
    1 billion, up 29%
    year-on-year, taking into account environmental and social purposes, types of bonds and loans.

    The sustainable debt area includes sustainability-related bonds and loans
    such as green bonds, green loans, social bonds and sustainable bonds.

    Driving the growth was the social bond category, which mainly raised funds
    for social goals such as employment, public health and education.
    By 2020, social bond issuance reached US$147.
    7 billion.

    In another category of sustainable debt, sustainable bonds grew 81% to US$68.
    7 billion, while the most important green bonds, trading volume increased by 13% to a record US$305.
    3 billion.

    However, growth was not across the board in 2020: the issuance of sustainability-related loans and green loans both fell by 15% to US$119.
    5 billion and US$80.
    3 billion, respectively.

    Mallory Rutigliano, Sustainable Finance Analyst at BNEF, said: "Covid-19-related lockdowns and related policies to curb the spread of debt affected the issuance of some sustainable debt instruments in 2020, but stimulated others
    .
    The overall growth rate of nearly 30% in 2020 shows that sustainability is on
    the agenda of investors, businesses and governments.
    Now, this relatively new market is seen as a tool
    that the global economy can use to rebuild a greener, fairer society.

    The highlight of the year for sustainable debt was a surge in the issuance of social bonds, helped by investor demand
    for products to address the coronavirus pandemic and recession.
    Last year, the largest single social bond ever issued came from entities
    such as the European Union, UNESCO and the African Development Bank.

    There has also been an impressive increase in green bonds raised to support environmental activities, especially in the final months
    of 2020.
    Issuance through August was down from last year, but surged to $62 billion in September, and the momentum continued into the fourth quarter
    .
    This not only set a new annual record for green bonds, but also brought the cumulative number of green bond issuances since 2007 to more than $1 trillion
    .

    Maia Godemer, Sustainable Finance Analyst at BNEF, said: "The growing demand from investors and stakeholders will encourage innovation in the sustainable debt market and drive the development of
    new instruments.
    While the market still needs to be more scrutinized for the sustainability of these products, issuers will need more transparency
    .
    However, the support of top central banks like the ECB, as well as regulators around the world, suggests that further strong growth
    will be seen in the future.

    Sustainable debt hit a new record for the largest issuance in a year in 2020, taking into account environmental and social purposes, bonds and loan types, with total issuance in 2020 at US$732.
    1 billion, up 29%
    year-on-year, taking into account environmental and social purposes, types of bonds and loans.

    Sustainable debt

    The sustainable debt area includes sustainability-related bonds and loans
    such as green bonds, green loans, social bonds and sustainable bonds.

    Driving the growth was the social bond category, which mainly raised funds
    for social goals such as employment, public health and education.
    By 2020, social bond issuance reached US$147.
    7 billion.

    In another category of sustainable debt, sustainable bonds grew 81% to US$68.
    7 billion, while the most important green bonds, trading volume increased by 13% to a record US$305.
    3 billion.

    However, growth was not across the board in 2020: the issuance of sustainability-related loans and green loans both fell by 15% to US$119.
    5 billion and US$80.
    3 billion, respectively.

    Mallory Rutigliano, Sustainable Finance Analyst at BNEF, said: "Covid-19-related lockdowns and related policies to curb the spread of debt affected the issuance of some sustainable debt instruments in 2020, but stimulated others
    .
    The overall growth rate of nearly 30% in 2020 shows that sustainability is on
    the agenda of investors, businesses and governments.
    Now, this relatively new market is seen as a tool
    that the global economy can use to rebuild a greener, fairer society.

    The highlight of the year for sustainable debt was a surge in the issuance of social bonds, helped by investor demand
    for products to address the coronavirus pandemic and recession.
    Last year, the largest single social bond ever issued came from entities
    such as the European Union, UNESCO and the African Development Bank.

    There has also been an impressive increase in green bonds raised to support environmental activities, especially in the final months
    of 2020.
    Issuance through August was down from last year, but surged to $62 billion in September, and the momentum continued into the fourth quarter
    .
    This not only set a new annual record for green bonds, but also brought the cumulative number of green bond issuances since 2007 to more than $1 trillion
    .

    Maia Godemer, Sustainable Finance Analyst at BNEF, said: "The growing demand from investors and stakeholders will encourage innovation in the sustainable debt market and drive the development of
    new instruments.
    While the market still needs to be more scrutinized for the sustainability of these products, issuers will need more transparency
    .
    However, the support of top central banks like the ECB, as well as regulators around the world, suggests that further strong growth
    will be seen in the future.

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