Going Green: Global sustainable bond issuance tops $99.9 bn in Q2 FY20

Global sustainable bond issuance topped $99.9 billion in the second quarter of 2020, a quarterly record, and 65 per cent higher than the first quarter. 

Record quarterly issuance of both social bonds at $33 billion and sustainability bonds at $19.1 billion drove the strong combined total. Green bond issuance was $47.8 billion, a 26 per cent increase over the first quarter, but still modest compared to the same period in 2019. 

According to Moody’s Investor Service, combined social and sustainability bond volumes could total $150 billion in 2020 on the back of the response to the coronavirus pandemic, and may near that of green bonds this year for the first time ever. 

Heightened awareness of the social issues related to health care and inequality, it said, will continue to support issuance. Moody’s said it expects green bond issuances to rebound in the second half of the year, and maintained its revised forecast of $175-225 billion for 2020.