Sustainable finance bond issuance last year reached a record $1 trillion for the first time, a 45% increase on 2020, according to data provider Refinitiv, part of the London Stock Exchange Group.
In addition, they accounted for a record 10% of global debt capital markets activity in 2021, up 6.6% year-on-year.
Green, sustainability and social bonds are all included in the category of sustainable issuance. The largest amount funds raised came from green bonds at a record $489bn. This was nearly double 2020 levels and consisted of more than 1,000 offerings for the first time in a year.
Sustainability and social bonds also had record issuance at $186bn and $193bn respectively.
The diversity of issuers increased as agency and sovereign issuers fell from the majority, 56%, of sustainable finance issuance in 2020 to 41% last year. As a result corporate issuers accounted for 57% of volume last year compared to less than half, 44%, in 2020.
Corporate sustainable finance bond offerings accounted for a record 11% of global corporate debt issuance during full year 2021, up from 6% during the same time last year, boosted by NextEra Energy Inc, State Power Investment Corp and China Three Gorges.
European issuers accounted for just over half, 54% of sustainable finance bonds last year, followed by 22% from the Americas and 18% from Asia Pacific.
JP Morgan was in the top spot for sustainable finance bond underwriting with 6% market share last year, an increase of 0.6% from the previous year ago. BNP Paribas and BofA Securities rounded out the top three bookrunners according to Refinitiv.
©Markets Media Europe 2022
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