Global Green Bond Sales Have Busiest January and February Ever
Sustainable bonds are expected to post record issuance this year, propelled by borrowers seeking cash to fund energy-transition plans.
Green bonds, which make up the largest category of sustainable debt, had their busiest February ever amid an unprecedented bonanza of global debt offerings.
Sales of green bonds globally totaled US$54.7 billion last month, making this the most active February since the inception of the green-debt market in 2007, according to data compiled by Bloomberg. About $83.3 billion worth of green bonds priced in January, also setting a record for that month.
Primary debt markets are off to a blockbuster start in 2024 as companies take advantage of strong investor demand to raise fresh capital. The U.S. investment-grade bond market is poised for the busiest quarter ever after seeing record sales in January and February. Over in Europe, the stage seems set for an “acceleration of issuance” in March following a busy February.
Last month, telecommunications giant Verizon Communications Inc. raised $1 billion from the green-bond market—its sixth such foray since 2019. Meanwhile, Canada sold C$4 billion (US$3 billion) of debt in its first issue under an amended framework for green bonds, which allows the country to raise funds to support nuclear power. And Brazilian ethanol and sugar producer Raizen SA says it plans to issue more green bonds after raising $1.5 billion to help fund waste-based biofuel production.
Sales of green, social, sustainability, and sustainability-linked bonds stood at about $90 billion for February, close to the record of roughly $91.3 billion set in February 2023, data compiled by Bloomberg shows.
Looking ahead, Citigroup Inc. expects sustainable bonds to post record issuance this year, propelled by borrowers seeking cash to fund their energy-transition plans and potentially lower interest rates in the second half of 2024.
ISSUANCE
| January | February | Year-to-date | year-over-year (%) | ||
| Green Bonds | $83.34 billion | $54.72 billion | $138.36 billion | 26.4% | |
| Green Bond Principles | $83.14 billion | $54.65 billion | $138.09 billion | 26.4% | |
| ESG Muni | $2.82 billion | $4.08 billion | $6.90 billion | -9.6% | |
| Sustainability Bonds | $36.21 billion | $16.47 billion | $52.68 billion | 5.9% | |
| Social Bonds | $27.42 billion | $15.31 billion | $42.72 billion | 28.9% | |
| Sustainability-linked Bonds | $4.82 billion | $3.56 billion | $8.37 billion | -55.0% | |
| Sustainability-linked Loans | $10.11 billion | $18.27 billion | $28.38 billion | -22.1% | |
| Green Loans | $8.94 billion | $0.73 billion | $9.66 billion | -26.0% |
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