Green bonds, which raise funding for environmentally beneficial investments, have grown dramatically and Standard & Poor’s Ratings Services estimates that corporate green bond issuance could reach up to $30 billion by the end of this year, a near 50% increase on the current size of the market ($19.1 billion).
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S&P PREDICTS $30 BILLION CORPORATE GREEN BOND ISSUANCE IN 2015, BUT CHALLENGES LIE AHEAD
Published by Uma Rajagopal
Posted on April 9, 2015
1 min read· Last updated: December 5, 2018
Key Takeaways
- S&P projected corporate green bond issuance could reach $30 billion in 2015, up from $19.1 billion.
- This forecast represented nearly a 50% year-on-year increase in the corporate green bond market.
- Growth momentum depended heavily on developments in China and the establishment of common standards.
- Corporate issuers, particularly utilities and real estate, are key contributors to green bond market expansion.
References
Frequently Asked Questions
What are green bonds?
Green bonds are debt instruments specifically earmarked to fund projects with environmental benefits, such as renewable energy and energy efficiency.
Who issued the forecast of $30 billion for corporate green bond issuance in 2015?
Standard & Poor’s Ratings Services projected the corporate green bond issuance could hit $30 billion in 2015.
How much did the corporate green bond market total before the projection?
The market stood at around $19.1 billion before the projected increase to $30 billion.
What factors could influence achieving that projected issuance level?
Market growth depended on developments in China and the adoption of common standards to support the green bond market.
Which sectors are prominent issuers of corporate green bonds?
Utilities and real estate companies played a significant role in driving corporate green bond issuance.
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