Green bond issuance has expanded rapidly in both China and India after national green bond guidelines came into effect.
New Delhi: The global green bond market hit a new all-time quarterly high in the second quarter of 2019 as issuers brought $66.6 billion of green bonds to market globally, propelling the first half of 2019 issuance to a record $117 billion, credit rating agency Moody’s Investors Service said.
“Following its strong performance so far this year, the green bond market remains on course to eclipse our 2019 forecast of $200 billion of total issuance,” the agency, an arm of the financial services firm Moody’s Corporation, said in its latest report.
It added the first-half issuance was 47 per cent higher than issuance in the same period of 2018, after issuance grew just 11 per cent year-on-year between the first six months of 2017 and 2018.
This growth came despite a 1.9 per cent decline in overall global bond issuance during the same period. Corporates were the strongest contributors to overall issuance, with $14.9 billion of non-financial corporate issuance and $13.6 billion of financial corporate issuance accounting for 22 per cent and 20 per cent of total volumes, respectively.
“European issuers had a leading 54 per cent market share, supported by a large debut $6.7 billion sovereign green bond from the Government of the Netherlands,” the report said. It added that green bond issuance has expanded rapidly in both China and India after national green bond guidelines came into effect.