The green bonds market rebounded in the first half of the year with $267 billion in issuance, the strongest half year results since records began in 2015, despite the rise in borrowing costs.
The value of green bond issuance grew by 18% compared to the same time period in 2022, despite an overall slowdown in corporate borrowing due to higher interest rates, according to data collected by LSEG Deals Intelligence.
However, by number of issues, 484 green bonds were brought to market during the first half of 2023, a decrease of 10% compared to a year ago and the lowest volume for a first half period since 2020.
The sustainable bonds sector largely flatlined in the first half of the year. It grew by 6%, largely due to the rise in green bonds, which are part of the wider sustainable bonds universe.
The first half of the year saw among others Swedish supermarket chain ICA Gruppen issuing a €310 million green bond instrument, and India launching its first ever sovereign green bond in January, worth $980 million.
There are also signs of continuing strength of the green bonds market at the beginning of H2 this year, with the Abu Dhabi Future Energy Company (Masdar) completing a green bond issuance for $750 million in July.
In the first half of the year, overall government agency and sovereign issuance increased 21% compared to the first half of 2022 and accounted for 45% of overall activity during the first half of 2023.
Cornelia Andersson, group head of sustainable finance and investing at LSEG, said: “Sustainable finance continues to be a growing market segment, driven by regulatory and market change as firms increasingly look to execute on climate and net zero transition strategies.”
Earlier this year, Singapore's government also released its own green bond framework as it prepares to issue its first sovereign green bond.
