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21 Jan, 2021 Author David FelibaRehan Ahmad
In the face of a sharp economic downturn spurred by a pandemic, 2020 was still a very good year for green bond issuances in Latin America.
The amount of funds raised in the region through the environmentally focused instruments totaled $7.82 billion, up 68.7% compared to 2019. And experts expect that growth to continue. Demand remains strong for 2021, for both use-of-proceeds green, social and sustainable bonds but also the newest ESG bond label, Sustainability-Linked Bonds. said Marilyn Ceci, global head of ESG Debt Capital Markets at J.P. Morgan.
Green bonds are the fastest-growing asset class globally, according to Sean Kidney, head of the Climate Bonds Initiative. While he acknowledged that growth continues to be a patchy story in Latin America, Kidney argued that the case has become stronger for regional countries looking to tap environmentally conscious inv
Rising ESG Demand Has Helped Debt Issuers Lower Borrowing Costs December 17, 2020
As socially responsible investment strategies gain popularity, new data shows that the influx of new money is starting to make an impact on green bond issuers.
For example, a growing body of research reveals that companies and governments that borrow using so-called green bonds are saving some money, the Wall Street Journal reports.
The market for these green bonds, which fund environmentally friendly projects like renewable power, is on the rise. Meanwhile, the new money inflows have helped push up prices and drag down rates on the bonds, making borrowing costs for issuers slightly cheaper. Meanwhile, analysts are witnessing a sort of ‘greenium’ or the little bit extra that investors are willing to pay for green bonds compared to traditional bonds.
Dec. 17, 2020 5:30 am ET
Cash is pouring into investments intended to combat climate change and otherwise benefit society. Now, evidence is emerging that all of the money is starting to have an impact.
A growing body of research shows that companies and governments that borrow using so-called green bonds can save a bit of money. The market for these bonds, which fund environmental objectives such as renewable power, is booming. All that money is driving up the prices and pushing down yields on the bonds, making borrowing slightly cheaper.
Analysts around the world are mining bond market data to quantify what they call “the greenium,” a measurement of how much extra investors will pay for green bonds compared with conventional bonds.