Green bonds hit record fundraise while lending and M&A sink
The figure marks an 18% increase on the same period last year, although issuance by number dropped 10% to 484 green bonds brought to market.
The figure marks an 18% increase on the same period last year, although issuance by number dropped 10% to 484 green bonds brought to market, according to LSEG Deals Intelligence.
Funds raised during the first quarter broke the all-time quarterly issuance record, which was subsequently broken by Q2's 9% increase.
Article 9 funds receive lowest inflows on record as Article 8 products face outflows
Sustainable finance bonds also saw a boost year-to-date, up 6% to $459bn on H1 2022, although not significant enough to overtake H1 2021.
Like green bonds, sustainable finance bonds raised greater capital over fewer bonds, with the total number sinking 16% year-on-year.
Sustainable finance bonds also took a greater proportion of global debt capital markets proceeds over H1, accounting for 10% of overall debt capital markets activity during H1 2023.
Social bond issuance grew both on a value and volume basis, up to $58.6bn during H1 2023, representing a 3% increase, and up 11% by number of issuances.
Meanwhile, sustainable lending dropped to a two-year low by volume and a three-year low by value, while M&A activity also decreased.
Lending totalled $304bn over the first six months of the year, down 20% on H1 2022, although the first rose quarter-on-quarter, with Q2 up 17% on the first quarter of 2023.
By number of offerings, the first half of 2023 recorded a 13% decrease year-on-year.
Emerging markets vs Europe: green bonds must serve both
American borrowers comprised 44% of total sustainable lending in the opening half of the year, with Ford Motor Company, NextEra Energy and Alphabet
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