Sustainable finance records smashed

According to data from BloombergNEF (BNEF), record levels of green bonds, loans and other forms of sustainable debt – $465bn – were issued last year, up 78% from the $261.4 recorded in 2018.

Last year also saw the cumulative issuance of sustainable debt smash through the £1trn barrier, reaching an all-time total of $1.17trn by 31 December.

“The steep increase is fuelled by end-investors' concerns about the threat of climate change, and the desire of many big company, bank and government leaders to be seen as behaving responsibly,“ said BNEF lead sustainability analyst Jonas Rooze.

Green bonds – securities with proceeds used for environmentally friendly projects – accounted for more than half of the sustainable debt market in 2019 after $271bn was issued, up from $182bn in 2018.

Sustainability-linked loans based on the borrower's performance on environmental, social or governance criteria enjoyed a 168% jump in volumes to reach $122bn.

Meanwhile, the value of sustainable bonds issued – which support both social and environmental activities – increased to a record $46bn last year.

“Our data shows sustainable finance continuing to power ahead on a global basis,“ Rooze added.

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