Wall Street is the largest bond issuing market in the world (getty)
Global sales of ESG corporate bonds fell for the first time since 2007 due to rising interest rates and continued turmoil in global financial markets. Economic uncertainty has also kept borrowers out of debt markets across the board Bond issue.
Bloomberg data showed that companies and governments worldwide raised $863 billion in ESG bonds in 2022, down 19% from $1.1 trillion in 2021. This is the first jump ESG bonds Since green bonds first appeared on Wall Street in 2007.
According to “Bloomberg” data released by the US financial site “Zero Hedge”, today, Sunday, the issuance of corporate bonds decreased by 34% to about $141 billion last year, which is the largest decline in all classifications, as government agencies and corporations returned spending on eligible projects. Major borrowers, including sovereign governments, have focused on long-term climate goals, after rushing to raise funds to bail out economies from the coronavirus pandemic.
Sales of sustainable bonds, the proceeds of which can be used for both social and green projects, fell 22% to $154 billion, the second-largest decline since 2007.
At a country level, emissions in the UK fell by 52% and those in the US by 39%. Environmental, social and governance (ESG) debt, i.e. debt related to sustainability, also decreased by 21% to $86 billion.
Green bonds posted the smallest year-on-year decline, down 11% to around $480 billion, helped by increased sales from China.
French bank BNP Paribas, the largest green bond issuer in 2022, expects green bond sales to rebound to 2021 levels during the year, largely driven by European issuance which will appear to be in desperate need of funds and the China, which wants to expand its economy After the process of full economic opening.
