Green bonds slow

The issuance of green bonds reached a milestone at the end of October, racking up $131bn, matching the value of bonds issued last year over the same period, and cumulative issuance now stands at $525 billion in the year to date.

However, all these figures are below the expectations set earlier in the year, and Nordic bank SEB has pointed to a ‘summer slowdown’ extending through to this autumn, with only $30bn issued in 3Q (down 30 per cent) and October at $15bn (down 15 per cent) year on year.

The overall bond market, has also slowed throughout 2018, and the appetite for all types has slowed, but the green bond market down significantly for reasons SEB ascribes to the green infrastructure project pipeline temporality drying; and lack of diversity or expansion in the market.

This is the first time green bond issuance has stepped back, but with the restoration of a ‘green pipeline, SEB is predicting more issuance in 2019.

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