ESG bond market on track to reach $1trn total issuance in 2023
Green bonds represented the majority of all GSSSB, sitting at 59% of all issued this year, with social bonds making up 18%, sustainability bonds 17% and sustainability-linked bonds at 6%.
Despite stagnating global bond issuance, the proportion of GSSSB continues to grow, with issuance forecast to grow between 5-17% on 2022, according to data from S&P Global Ratings.
In total, GSSSB issuance is expected to account for 14-16% of total bond issuance throughout the year, having captured 13% of issuance in the first half of the year.
Total cumulative issuance of GSSSB passed the $4trn mark in June 2023, less than one year after surpassing $3trn.
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However, the S&P analysts acknowledge some headwinds to GSSSB issuance, such as rising interest rates, risk of recession in developed markets and rising anti-ESG sentiment in the US, which has seen some states push to prevent public finance issuers labelling their bonds as GSSSB.
Green bonds represented the majority of all GSSSB, totalling 59% of all bonds issued this year, with social bonds making up 18%, sustainability bonds 17% and sustainability-linked bonds 6%.
Meanwhile, Europe constituted the majority of GSSSB issuance for the first time in H1 2023, the S&P analysts noted, with Asia sitting at 20% and North America at 12%.
«Europe will remain the leading region for GSSSBs, while North American issuance may be hampered by lower supply and demand for the remainder of the year,» S&P analysts said. «Emerging markets may see increased issuance in the coming year.»
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