Sustainable Finance Bonds Total US$544.3 Billion

Sustainable Finance Bonds Total US$544.3 Billion

All-Time Record: Sustainable Finance Bonds Total US$544.3 billion, More Than Double Issuance Levels of FY 2019 

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Q3 2020 hedge fund letters, conferences and more

Sustainable Finance Bonds Insuance Reach An All-Time Record

  • All-time annual record: Sustainable Finance bonds totalled US$544.3 billion, more than double issuance levels during FY 2019
  • Sustainable Finance bonds totalled US$180.4 billion during 20Q4, up 14% compared to 20Q3 and more than double the proceeds registered during 19Q4
  • Highest Quarterly Total on Record: 20Q4 marks the highest quarterly total, by proceeds, for Sustainable Finance bonds since our records began in 2015
  • All-time annual record: Green bond issuance totalled US$222.6 billion, a 26% increase compared to FY 2019
  • Largest quarter for green bonds on record: Green bond issuance pulled back during 20Q4, as US$63.3 billion was raised, marking a decline of 22% compared to 20Q3
  • Sustainability and Social bond categories each surpassed US$$100 billion for the first time
  • With a record US$77.4 billion of issuance during 20Q4, US$164.2 billion worth of Social bonds were recorded globally during FY 2020, nearly 10 times the total raised during FY2019
  • Social bond issuance accounted for 30% of the Sustainable Finance bond market during 2020, compared to 5% during FY 2019
  • Sustainability bond issuance reached US$127.6 billion, more than triple the levels of FY 2019
  • The number of Sustainability bonds increased 106% compared YoY
  • Highest percentage since Sustainable Finance records began in 2015: Agency and Sovereign issuers accounted for 56% of overall activity FY 2020
  • Registering a 26% increase compared YoY, Corporate issuers accounted for 43% of issuance, while Agency and Sovereign issuance more than tripled compared to 2019 levels
  • Regional markets for Sustainable Finance bonds issuers: Europe, 53% market share, Americas, 26% and Asia Pacific, 16%
  • JP Morgan top spot for Sustainable Finance bond underwriting with 6.3% market share, an increase of 2.5 market share points compared YoY
  • BNP Paribas and Credit Agricole rounded out the top 3 underwriters
  • The top 10 Sustainable Finance bond underwriters comprised 49% of the overall market, up from 38% YoY

Sustainable Finance Bonds

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EuropeEquities did well last month as most market watchers have noted that Value outperformed growth. In his March Factor Performance report, Alex Botte of Venn by Two Sigma noted that March was a strong month for the global Equity factor, especially in developed markets. Q1 2021 hedge fund letters, conferences and more He said Europe Read More

Source: Refinitiv

Syndicated Loans

  • FY 2020 Sustainable lending totalled US$199.4 billion, a 3% increase YoY
  • 20Q4 sustainable lending activities totalled US$75.3 billion, doubling lending during the third of this year and the strongest quarter for the sustainable category since 19Q4
  • FY 2020 borrowers of overall sustainable lending: Europe accounted for 64%, led by facilities for France’s Sanofi SA and Airbus SE and Italy’s Enel SpA, Americas, 16% and Asia Pacific, 14%
  • BNP Paribas maintained the top spot for sustainable syndicated lending during FY 2020, with 5.9% market share, an increase of 0.1 market share points
    • Followed by Mitsubishi UFJ Financial Group with 4.8% and Sumitomo Mitsui Financial Group with 4.5%.

Equity Capital Markets

  • All-time record: ECM activity for sustainable companies totalled US$13.8 billion, a 65% increase compared to FY 2019
  • 20Q4 sustainable equity issuance totalled US$4.2 billion, a 24% decline compared to 20Q3, which ranked as the largest quarter for sustainable ECM activity on record
  • FY 2020 Overall ECM activity: Americas accounted for 62%, Europe, 23% and Asia Pacific, 11%
  • FY 2020 Top bookrunners for sustainable equity offerings: Morgan Stanley, Bank of America Securities and JP Morgan topped the list registering a combined market share of 46%.

Mergers & Acquisitions

  • 3-Year Low: M&A activity involving sustainable companies totalled US$32.3 billion during FY 2020, 9% decrease compared to FY2019
  • 1% Decrease YoY: 497 sustainable deals were announced during FY 2020
  • Number of deals: China accounted for 20%, United States, 9%, India and Italy, 7%
  • Deal Value: Europe, 43%, Asia Pacific, 33% and Americas, 23%
  • Based on deal making involving targets or acquirors operating in sustainable industries:
    • Goldman Sachs led the advisory league tables for FY 2020, advising on 8 deals valued at US$6.2 billion
    • JP Morgan and Nomura round out the top 3 financial advisors

Sustainable Finance Bonds

Source: Refinitiv

Sources: Data/ Charts: Refinitiv

Commentary: Matt Toole, Director of Deals Intelligence, Refinitiv

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