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Changing credit market boosts ESG bonds (2024)
| Environmental, social, and corporate governance |
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| • What is ESG? • Enacted ESG legislation • Arguments for and against ESG • Opposition to ESG • Federal ESG rules • ESG legislation tracker • Economy and Society: Ballotpedia's weekly ESG newsletter |
January was the biggest month for ESG bond issuance since the market was established 17 years ago. Credit market expectations of interest rate cuts from the Federal Reserve have reduced borrowing costs and boosted the issuance of ESG debt during the first month of the year:
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Global sales of green, social, sustainability and sustainability-linked bonds totaled $149.5 billion last month, making it the most active January since the inception of the green debt market in 2007, according to data compiled by Bloomberg. Falling borrowing costs and seemingly insatiable investor demand have turbo-charged issuance in bond markets across the globe. More than 540 bond sellers tapped primary markets last month — the most in records going back two decades — to raise a record $721 billion in both ESG-labeled and conventional bonds as of Jan. 26, ending the month at over $817 billion, according to Bloomberg-compiled data. In the US, the high-grade market had the busiest January ever. … Sales of green bonds, the largest category of sustainable debt by amount, totaled $84.2 billion, a record for the month of January. Issuance of sustainability bonds, which can be used to fund both green and social projects, reached $32.4 billion, also a record for the month. Sustainability-linked bond — or SLB — sales, meanwhile, totaled just $3.7 billion.[1] |
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See also
- Environmental, social, and corporate governance (ESG)
- Economy and Society: Ballotpedia's ESG newsletter
External links
Footnotes
- ↑ Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
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