Cos raise $12.9 bn via green bonds in April-June: Moody's

Says green bond volumes for 2015 are highly likely to exceed and could even double last year's record volume

Companies globally have raised USD 12.9 billion through issue of 'green bonds' in the April-June quarter of 2015 and going ahead more such issuances are likely to come from India, Moody's Investors Service said today.

It said based on issuance volumes in first half of 2015, as well as expectations of continued offerings in China and India, green bond volumes for 2015 are highly likely to exceed and could even double last year's record volume of USD 37 billion.

"Green bonds raised approximately USD 12.9 billion during the second quarter of 2015, bringing year-to-date totals to roughly USD 19.2 billion," Moody's Investors Service said in a report.

In January-March of 2015, green bonds worth USD 6.3 billion had hit the market.

The report said USD 12.9 billion was raised during the second quarter via 49 transactions executed by 36 distinct issuers. Of this sum, approximately USD 6.1 billion hit the market in June.

Proceeds from green bond issuance were earmarked for a variety of projects, including renewable energy and energy efficiency, financing hybrid and electric automobiles, and public wastewater treatment and drinking water projects.

In addition to the faster pace of issuance, the second quarter also registered a few first-time issuances. Besides, nearly all such bonds were rated in 'Investment' grade categories, it added.

"Issuers from a variety of industries came to market in the second quarter, but over one third of the quarter's volume was sourced to banks and other financial institutions. These accounted for USD 5.2 billion, or just over 40 per cent of the transaction volume," Moody's Investors Service said.