Accelerating ESG’s momentum

 Accelerating ESG’s momentum

Global bond issuance volumes soared last year as governments around the world tapped public markets to pay for social support programs to help their citizens through the pandemic but, issuance at those levels are not sustainable, according to Paul White, Head of Capital Markets, ANZ Institutional.

“I think last year was a phenomenon that won’t be repeated given that initial response,” he said. “Volumes will still be larger than 2019 but they will come off their peak from last year.”

However, one area of growth is in the sustainable finance segment of the capital markets such as green, social and sustainability linked bonds. The year 2020 saw a record $US730 billion of issuance in the global sustainable finance markets, a 30 per cent jump from the $US564 billion issued in 2019, according to data from Bloomberg New Energy Finance.

“One pleasing aspect is the growth in terms of ESG issuance,…

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