Global green bond issuance looks set to scale new heights, if a new industry report on issuance levels is anything to go by.
In a client report, Moody’s Investors Service has forecast a 20% annualized jump in issuance to $200 billion in 2019, citing continued issuer diversification and greater clarity around standards that have been providing a boost to the market.
Despite slower growth in 2018, a broader focus on sustainability will also drive growth in social, sustainability and other labelled bonds, the rating agency added.
Overall, the way Moody’s view things – investor demand for green and sustainable investment products will continue to grow in 2019 and far outpace the supply of such bonds. “In addition, heightened commitment to addressing climate change will drive growth as governments increasingly seek to finance climate mitigation and adaptation projects with green bonds,” Kuchtyak said.