January 11, 2018 Read More →

Green Bonds Hit Record Total $155 Billion In 2017

Reuters:

LONDON—Global green bond issuance hit a record $155.5 billion in 2017, surpassing previous estimates, and could reach $250 billion-$300 billion this year, research from the Climate Bonds Initiative (CBI) shows.

Issuance last year was 78 percent higher than 2016’s $87.2 billion and well above the CBI’s estimate in December of $130 billion. The United States, China and France accounted for 56 percent of total issuance in 2017, according to the CBI, a London-based non-profit organisation which certifies the green credentials of bonds.

Fannie Mae was the largest overall issuer in the United States, with $24.9 billion from its green Mortgage Backed Securities programme.

Green bonds are a growing category of fixed-income securities, which raise capital for projects with environmental benefits. There were 10 new entrants to the market last year: Argentina, Chile, Fiji, Lithuania, Malaysia, Nigeria, Singapore, Slovenia, Switzerland and the United Arab Emirates.

Although green bonds make up a small fraction of the overall bond market, they are attracting more attention because meeting emissions-cut targets will require trillions of dollars of capital from public and private sectors. The most common use of proceeds from green bonds last year was on renewable energy but investment in low-carbon buildings and energy efficiency rose in 2017, the CBI said.

More: https://www.reuters.com/article/greenbonds-issuance/global-green-bond-issuance-hit-record-155-5-billion-in-2017-data-idUSL8N1P5335

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