Wall Street is the world’s largest bond issuance market (getty)
Global sales of ESG corporate bonds declined 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 issuance.
Bloomberg data showed that companies and governments around the world raised $863 billion in ESG bonds in 2022, down 19% compared to $1.1 trillion in 2021. This is the first drop in ESG bonds Since green bonds first appeared on Wall Street in 2007.
According to “Bloomberg” data published by the American “Zero Hedge” financial website, today, Sunday, social bond issuance decreased by 34% to about $ 141 billion last year, which is the largest decline in all classifications, as government agencies and companies returned to 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 sustainability 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.
By country, UK issuances declined by 52% and US issuances by 39%. Environmental, Social and Governance (ESG) debt securities, that is, those linked to sustainability, also fell by 21% to $86 billion.
Green bonds saw the smallest decline year-on-year, down 11% to about $480 billion, helped by increased sales from China.
The 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 issuances that will appear to be in desperate need of funds and China, which wants to expand its economy. After the process of full economic opening.