Sustainable debt issuance: In 2019, the volume of sustainable debt issued globally hit a record high of $465 billion (£358bn), up 78% from $261.4 billion (£201.3bn) the previous year.

That’s according to Bloomberg New Energy Finance (BNEF), which says last year also saw all-time, cumulative issuance of sustainable debt break through the $1 trillion (£770bn) barrier and reach $1.17 trillion (£900bn) by 31st December.

Sustainable debt includes products such as green bonds, which made up more than half the market in 2019 – $271 billion (£208.7bn) of green bonds were issued, up from $182 billion (£140.2bn) in 2018.

BNEF notes sustainability-linked loans are now the second most popular type of sustainable debt – linked to the borrower’s environmental performance, they encourage greener behaviours.

The volume of sustainability-linked loans rose by 168% to $122 billion (£94bn) in 2019.

The report highlights Europe pioneered the field of sustainable debt and continues to make up 53% of the global market – along with the Middle East and Africa, it issued $262 billion (£202bn) throughout 2019.

Mortgage financier Fannie Mae was the largest issuer of global sustainable debt, providing mortgages worth a total of $22.8 billion (£17.6bn).

Jonas Rooze, Lead Sustainability Analyst at BNEF, said: “Our data show sustainable finance continuing to power ahead on a global basis.

“The steep increase is fuelled by end-investors’ concerns about the threat of climate change and the desire of many big company, bank and government leaders to be seen as behaving responsibly.”

The post Sustainable debt issuance hit all-time high in 2019 appeared first on Energy Live News.

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