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The green bond market: from inception to today

Author: Steven Hur, Head of Credit Research, AMP Capital

Green bonds have been in the marketplace for a little over a decade – a slither of time compared to bank lending or government bonds. As such, the green bond market remains relatively immature, notwithstanding some substantial progress over the past five years. But it is undoubtedly among the fastest growing of the fixed income instruments.

The critical question for green bonds remains measurement – how to show the tangible environmental benefits emanating from the funds raised. Globally, banks and government agencies are working together to better define those benefits, encouraged by the strength of demand for green bonds.

According to Moody’s Investors Service, issuers brought $US47.2 million of green bonds to the global market in the three months to the end of March, 2019, a year on year increase of 40 per cent, and Moody’s now forecasts that this calendar year, issuance of green bonds will hit $US200 billion.

 

(Click on the cover page image for the full document)

 

  •   25 July 2019
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