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26 September 2017

Green bonds are expected to reach more than $130 billion in 2017

Bloomberg New Energy Finance published its most recent analysis and revealed that green bonds issuance is set to reach $134.9 billion by the end of 2017, a new record so far.

So far, green bonds issuance has been $96 billion and another $39 billion is anticipated for the next months.

If the almost $135 billion projection comes true, it will be an increase of 36 percent in relation to 2016, which saw $99.1 billion of green bonds in total.

In 2015 $50 billion of green bonds were issued, in 2014 $36.6 billion, and in 2013 $14.8 billion.

Southern Company’s subsidiary Southern Power Co is said to be largest US green bond issuer to date, since it has issued over $3 billion worth of green bonds destined for investment in clean energy since 2015.

Michael Sheren, Adviser to the Bank of England and co-Chair of 20’s Green Finance Study Group had commented earlier this year that financial innovation in creating new types of green bond will keep demand growing.

“There’s about $100 trillion of institutional money in the world, and less than 1 percent is invested in anything green”.

He had added: “We have to make it palatable to institutional investors. Green bonds are the best instrument to do this”.

As more and more institutions are issuing green bonds, they have begun coming in different shades to help investors track exactly how green the securities really are.

Dark green bonds adhere to the strictest environmental criteria, while the lighter green shade is being used to fund a broader array of projects.

The full report is only available to Bloomberg Terminal subscribers, and can be accessed here

To learn more about Green Bonds, you can download our Infographic here

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