Global ESG bond issue triples as part of decarbonization

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TOKYO – Global issuance of corporate bonds specializing in environmental, social and governance issues reached $ 256.8 billion this year, 3.4 times higher than between January and June 2020, while companies are rushing to invest in projects and research for decarbonization.

The highest-growing ESG-themed bonds on Friday were green bonds, according to data from Refinitiv. Emissions were multiplied by 2.9 to reach 162.8 billion dollars, or 63% of the total.

Global investments and loans necessary for decarbonization will reach between 100,000 and 150,000 billion dollars within 30 years until 2050, according to the Boston Consulting Group. With the public offering potentially lowering earnings per share, companies are choosing to issue bonds when interest rates are low.

ESG bonds are an attractive way to raise much-needed funds due to the high demands of investors.

Europe topped the volume of ESG corporate bond issuance with $ 121.4 billion, growing 3.2 times and accounting for 47% of the global total. Japan’s emissions increased 4.7-fold to $ 10.1 billion, while those from the United States increased 2.5-fold to $ 29.1 billion. Asia ex-Japan rose 3.5 times to $ 76.6.

In March, Toyota Motor issued ESG bonds for the development of safety-related technologies and electric vehicles, worth 130 billion yen in yen-denominated bonds and $ 2.7 billion in bonds denominated in yen. dollars. The French electricity company EDF raised 1.25 billion euros with an ESG bond issue in May.


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