Global sustainable finance soared 58% to a record $139.8bn in 2017. The increase was attributed to Q4 volume of $42.8bn, the highest quarter on record.
Corporate issuance grows
Global corporate sustainable finance jumped 76% to a record $44.1bn, with EMEA accounting for 47.3% of such volume. While green bond issuance grew, the average deal size, however, decreased 7% from $340m in 2016 to $315m in 2017. Altogether, corporate sustainable finance bonds accounted for 31.6% of the total sustainable finance market.
Utility & energy continued to drive global corporate sustainable finance, however, forestry & paper and construction & building were the most noteworthy industries in terms of growth. Forestry & paper rose 230% from $615m via 2 deals to $2.0bn via 6 deals in 2017, while construction & building rose 4,875% from $24m via 1 deal to $1.2bn via 10 deals in 2017.
Green bonds dominate the market
Similarly, global green bonds reached a record volume of $121.9bn and accounted for 87.1% of the total sustainable finance market. 2017 volume soared 53% to a full-year record, and activity increased 84% year-on-year. Ultimately, EMEA drove the record with $57.1bn issued in 2017, followed by APAC with $43.4bn.
China facilitated the largest number of green bonds in 2017, totaling $30.9bn via 82 deals—with 50 debut issuances. As a result, emerging markets issued a record $47.2bn of green bonds, accounting for 38.7% of global volume.
Sustainable finance full-year 2017 rankings
|2017 Global Sustainable Finance Bonds Ranking by Value|
|Jan 24||Republic of France||$7.51bn||Green||Yes|
|Sept 13||Mexico City Airport Trust||$4.00bn||Green||No|
|Oct 26||Bank of Communications||$3.01bn||Green||No|
|Nov 28||Bank of Beijing||$2.27bn||Green||No|
|May 31||Nederlandse Waterschapsbank||$2.23bn||Social||Yes|
|Apr 17||Bank of Beijing||$2.18bn||Green||Yes|
|Sep 28||Industrial & Comm. Bank of China||$2.14bn||Green||Yes|
|Feb 27||North Rhine Westphalia||$1.93bn||Sustainability||No|
|Nov 9||China Development Bank||$1.66bn||Green||No|
For 2017 bookrunner rankings for the sustainable finance and green bonds market, contact us for the full report below.
Data source: Dealogic, as of January 1, 2018
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*Sustainable Finance includes green, social, and sustainability bonds (proceeds of sustainability bonds are split between green and social projects)