Taking a more holistic approach to sustainable financing

AS WE get into the final lap of bond issuances for the year, it is helpful to take stock of where the green bond markets are and what we could look forward to in 2019 and beyond.

As of end-November, the issuance level stood at just over US$164 billion, well placed to exceed last year's aggregate issuance. European issuers have dominated yet again capturing over 50 per cent market share, while Asia Pacific clocked just over 30 per cent, with China, not surprisingly, accounting for about two-thirds of the region's issuance.

To start with, the reference to green bonds now has become a lot broader: the market has started to distinguish between the various subsets of sustainable bond financing with a clear demarcation between green, Sustainable Development Goals (SDGs), sustainability and social bonds.