Market and Regulatory Highlights
Q4 2023 saw $227bn of GSS+ bond issuances, bringing the final volume for 2023 to about $785bn, according to ICMA (Quarterly Report).
The figure means the market fell short of the total for 2022, which amounted to $925bn in issuances (Crédit Agricole CIB ESG Fixed Income Research).
Looking at 2024, a variety of forecasts have been released, and expectations in general remain positive following a 2023 marked by high inflation and general market uncertainty. Market growth is expected to be fueled by EU issuers, with the EU Commission announcing it intends to issue €75 billion worth of bonds in the first half of 2024, primarily to finance the NGEU program (Environmental Finance). The trends seen in 2023 will continue despite geopolitical challenges, and green bonds will still be the most common format, according to Crédit Agricole CIB ESG Fixed Income Research.
By: Damaso Zagaglia, Associate Vice President, Sustainable Finance Business Development, ISS-Corporate