Sustainable corporate bonds: rising demand amid tight supply
Sustainability has steadily drawn interest from institutional and retail investors, as governments have generally been setting more aggressive targets for public and private sector sustainability
THE market for sustainable bonds has grown rapidly over the last decade to reach about 14 per cent of the global fixed income market. This swift growth was supported by strong investor demand around the world.
Issuance has broadened from the more familiar “green” bond structure to social and sustainable bonds, and more recently into sustainability-linked structures. This has added to the appeal of the asset class.
Global issuance of green, social, sustainability, sustainability-linked and transition bonds totalled US$216 billion in the third quarter and US$769 billion in the first nine months of 2024, indicated November 2024 data from Moody’s.
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