MILAN, June 18 (Class Editori) – International finance is increasingly interested in green bonds, securities issued by governments, financial institutions and public and private groups to finance investments in works and products with a high environmental value.
The second news is that China, in a market that has reached 521 billion outstanding securities, aims to reach and surpass the United States in the main issuers ranking.
Meanwhile, by the half of 2019 green securities issues have reached 90, a record value, and for the second half of the year are expected even higher volumes, with sovereign green bonds, ie issued by states, and banking to pull the sprint.
Analysts' forecasts for the end of 2019 have soared to 250 billion dollars, eliminating every previous estimate. If then we add the other sustainable financial instruments (SDG bonds, ESG and social bonds), we reach 300 billion dollars.
The boom was recorded by CBI (Climate bond initiatives), the sector's reference organization, which has just completed the 2018 report with the outlook for the whole 2019.
The most interesting data concern the geographical distribution of the issuers: China, with 18% thanks to a value of 31 billion dollars, is now one step away from the United States, with 20% (34.2 billion dollars). In Europe, 3 countries are leading: France (8%), Germany (5%) and the Netherlands (4%). Italy is in 16th place in the overall rank, and ninth among European countries, after Ireland and Norway. By volume of bonds, Fannie Mae ranks first, with 20.1 billion dollars, followed by the Industrial Bank of China (9.6 billion dollars) and the Republic of France, with the 6 billion dollars sovereign green bond.
Since 2007, the year of the first green bonds, the outstanding green bonds have reached 521 billion dollars, a figure reached mostly thanks to the 20% of the United States (118.6 billion dollars). China, for having entered the market several years later, has already put together 77.5 billion dollars.
Bronze medal to France with 56.7 billion dollars. Forecasts for the second half of 2019 see further growth driven by the increasingly favorable tax conditions granted to sustainable issuers. Climate Bond Initiatives is betting on a boom in green bonds in Japan, with the debut of government agencies.
Eyes on China too, which should further reduce distances from the United States, because as many as 47 issuers, all from the public sector, are already at the starting line with a potential of 125 billion dollars. Fannie Mae, the European Investment Bank, the World Bank, and the Swedish public group Vasakronan are expected on the market for the second half of this year.
The practice is that the regular issuers confirm their sustainable financial strategy year after year, so that 63% of the market is held by the same groups as in previous years. Russian railways are also on the track, making their debut in green bonds, while in Italy it is expected a new issue from the Fs group: the proceeds of the first bonds have financed the purchase of high-speed trains with environmental impact certification, and will also cover the new Rock and Pop regional trains.
Meanwhile, May ended with CBI certified green emissions for 23.8 billion dollars. June has now stopped at 2.6 billion dollars, but the data has not yet been updated.
(Source:Class Editori)
Notice: No person, organization and/or company shall disseminate or broadcast the above article on Xinhua Silk Road website without prior permission by Xinhua Silk Road.
A single purchase
