Green bond market to remain ‘resilient’

Despite slowing global issuance and a likely shift in the credit cycle, the green bond market is expected to remain resilient according to the latest report by S&P Global Ratings.

The report points out that the market may grow by 8 per cent in 2019, underpinned by strong market fundamentals – such as policy and regulation, rising awareness of environmental risks and new business opportunities – and greater involvement from financial institutions as they incorporate broader sustainability considerations into their investment decisions.

Green bond issuance is predicted to reach a new high of US$180bn in 2019, following the current record high of US $167bn in 2018. While Europe remains the primary region for green bond issuance, close to 40 per cent of new green-labelled issuance in 2018 came from China – reflecting the important role banks are playing in delivering China’s ambitious green growth strategy and this is likely to continue.

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