Record sales of green bonds in the first half of 2024

https://www.bloomberg.com/professional/insights/sustainable-finance/record-sales-of-green-bonds-in-the-first-half-of-2024/

A sharp rebound in green bond issuance and investor demand during Jan–Jun 2024, with several markets seeing very large deal sizes, strong order books (often oversubscribed), and tighter pricing versus prior years.

Relevant background (what drove the surge of green bonds)

• More stable rate expectations than 2022–2023 reopened primary bond markets, bringing back investment-grade demand.

• Policy and disclosure pressure (especially in Europe) kept sustainable finance high on agendas, pushing asset owners to allocate to labelled instruments.

• Refinancing and capex needs: issuers used green bonds to fund renewable energy, grid upgrades, building efficiency, and clean transport.

• Preference for “use-of-proceeds” structures: compared with some sustainability-linked bonds that faced KPI credibility scrutiny, green bonds are easier to evaluate because proceeds are ring-fenced for eligible projects.

  
  

What “record” often looks like in practice

• Bigger volumes, more frequent issuance, and repeat issuers returning to market.

• Occasional “greenium”: green bonds pricing slightly tighter than comparable conventional bonds, reflecting strong demand.

• Greater emphasis on framework quality, external reviews (e.g., second-party opinions), and allocation/impact reporting to address greenwashing concerns.

#GreenBonds #SustainableFinance #ESG

#ClimateFinance #EnergyTransition #NetZero

#GreenInvesting #CapitalMarkets #ImpactInvesting

#ClimateAction