Christopher Flensborg, Head of Climate & Sustainable Financial Solutions at SEB, says: “The green bond market continued a positive trend over the summer with July 2019 delivering a total issuance of USD 21.7bn, significantly outperforming the previous year. This was primarily due to issuance in the corporate, financial and SSA sector. July’s positive developments have not been as strong in August with USD 4.7bn as of 28 August, although the full data set for the current month will not be available until early September. The market at YTD 28 August 2019 is nonetheless up 29% year-on-year and with total issuance already passing the USD 140bn it is comfortably on track to match our more bullish outlook for the full year, in the range of USD 210-240bn.”
Please find below the top line points. A link to the report can be found here.
- Europe continues to be a driving force in the green bond market, accounting for 36%, 32% and 58% (ex Nordic) of total issuances in June, July and August, respectively
- The US market continues to be dominated by the MBS sector and is consistent at around 25% of the total market
- the CAD is emerging as a large issuance currency with IBRD issuing 1,5bn, EDC 500mm and the City of Ottawa 302mm. The GBP is also emerging as a new currency for large issuance with EIB issuing 800mm and KFW 650mm
- The financial sector has raised USD 42.16bn through green bonds so far in 2019, a YoY increase of 35%
- The largest issuance within the financial sector came from China with the Industrial Bank Co Ltd issuing a CNY 20bn (USD 2.90bn) green bond in July, followed by BBVA from Spain with a EUR 1bn (USD 1.13bn) green bond in June, and Societe Generale with a EUR 1bn (USD 1.12bn) green bond in July
- The corporate sector has raised USD 35.81bn in green bonds format so far in 2019, accounting for 25% of total green bond issuance YTD 28 August 2019, a YoY increase of 78%
- The two largest issuances of 2019 in the corporate sector came with Engie SA from France (USD 1.68bn) in June and E.ON SE from Germany (USD 1.66bn) in August
- Within the corporate space, the energy sector has been very active with ENBW selling Euro 500mm two times, Greenko Solar raising USD 950mm
- The government agency sector has raised USD 21.49bn through green bonds so far in 2019, a YoY increase of 293%