Green Bonds Review: Towards another record year for G&S supply?

Green & sustainable bonds issuance reached new highs in 2021

We consider green, social, sustainability and sustainability-linked bonds as “green & sustainable” (G&S) in the entire document.

Supply in G&S instruments reached new highs in 2021, above 760bn €-eq. in all currencies, including 390bn in €-denominated bonds. Therefore, the total outstanding in G&S bonds has reached 1.7trn €-eq at end-2021, a 70% increase vs end-2020 outstanding. More than half of those are €-denominated, but CNY
and GBP are gaining market share in the total G&S outstanding.

Penetration rates of G&S instruments are still rising fast: they accounted for almost 26% of all non-sovereign €-bond issuance in 2021, vs 17% in 2020.

If 2020 was the year of Social bonds, 2021 was definitely the year of SLBs: issuance in those sustainability-linked bonds rose 11x vs 2021 and they accounted for 10 to 11% of the total G&S supply last year.

What to expect for 2022 G&S supply ?

On 26 January, the Natixis Research team was pleased to host the webinar:
"Green & sustainable bond outlook for 2022". Watch the replay below: