Quarterly Green Bond Issuance Surpasses $100bn
Debt Capital Markets
- Sustainable Finance bonds increased 48% compared to 20Q4, marking just the second time that Sustainable bond issuance surpassed US$200 billion during a quarter
- 21Q1 highest quarterly total: by proceeds and number of issues, for Sustainable Finance bonds since our records began in 2015
- As a percentage of global debt capital markets proceeds, Sustainable Finance bonds accounted for a record 11.5% of first quarter activity, up from 9.5% during fourth quarter 2020
- All-time quarterly record: During the 21Q1, Green bond issuance totalled US$131.3 billion, an increase of more than four times 20Q1 levels
- Quarter first-ever: Green bond issuance surpassed US$100 billion for the first time during a quarter and also set an all-time quarterly record for number of issues during the opening quarter of 2021
- All-time quarterly records set by the Sustainability and Social bond categories 21Q1
- Bolstered by a record-breaking offering from the European Union, Social bond issuance totalled US$91.8 billion during 21Q1, nearly 10 times the total raised during 20Q1
- Social bond issuance accounted for 32% of the Sustainable Finance bond market during 21Q1, compared to 10% during 20Q1
- All-time quarterly record: Sustainability bond issuance reached US$42.2 billion during 21Q1, more than double the levels seen during 20Q1
- The number of Sustainability bonds increased 144% compared YoY
- Agency and Sovereign issuers accounted for 50% of overall activity during 21Q1, down from 64% of Sustainable Finance during 20Q4
- Registering a 146% increase compared to a year ago, Corporate issuers accounted for 49% of issuance, up from 35% during the 20Q4
- Corporate Sustainable Finance bond offerings accounted for a record 10% of global corporate debt issuance during the 21Q1, up from 7% during 20Q4
- Largest regional market for Sustainable Finance bonds: European issuers with 62% market share during 21Q1
- The Americas 18% and Asia Pacific 15%
- BNP Paribas moved into the top spot for Sustainable Finance bond underwriting with 6.7% market share during 21Q1, an increase of 3.1 market share points compared to a year ago.
- JP Morgan and Credit Citi rounded out the top three underwriters during the first quarter.
- The top ten Sustainable Finance bond underwriters comprised 50.2% of the overall market during 21Q1, up from 37.8% a year ago.
- Quarter First-Ever: Sustainable lending totalled US$113.6 billion during 21Q1, more than doubling year ago levels and surpassing US$100 billion for the first time during a quarter
- 21Q1 registered a 26% increase compared to 20Q4 and marks the second consecutive quarterly increase for sustainable lending, after three consecutive quarterly declines during 2020
- 21Q1 borrowers of overall sustainable lending: European borrowers accounted for 53% of overall sustainable lending, led by facilities for Italy’s Enel SpA and Belgium’s Interbrew-Simba
- Lending in the Americas accounted for 32% of 21Q1 activity, the highest percentage since the 19Q1, while Asia Pacific lending accounted for 10%
- BofA Securities moved into the top spot for sustainable syndicated loan mandated arrangers during 21Q1, with 7.0% market share, an increase of 4.3 market share points
- Followed by Mitsubishi UFJ Financial Group with 5.5% and Mizuho Financial Group with 5.0%
Equity Capital Markets
- All-time quarterly record: Equity Capital Markets activity for sustainable companies totalled US$11.2 billion during 21Q1, more than double activity levels of 20Q1
- By proceeds, 21Q1 sustainable equity issuance increased 62% compared to 20Q4, despite a 22% decline by number of offerings compared to the previous quarter, which set an all-time quarterly record by number of new issues.
- 21Q1 Overall ECM activity The Americas accounted for 75%, Europe with 24%
- 21Q1 Top bookrunners for sustainable equity offerings Morgan Stanley, Barclays and Goldman Sachs registering a combined market share of 50%
Mergers & Acquisitions
- 3-Year high: M&A activity involving sustainable companies totalled US$44.9 billion during 21Q1, more than four times 20Q1 levels
- 26% Increase YoY: 218 sustainable deals were announced during 21Q1
- Number of deals: China accounted for 22% of total sustainable deal making activity during the quarter, followed by the United States (12%), Italy (8%) and Germany and India (6%)
- Sustainable acquisitions by Special Purpose Acquisition Companies (SPACs) totalled US$31.4 billion, or 70% of total announced M&A activity during 21Q1
- Based on deal making involving targets or acquirors operating in sustainable industries:
- BofA Securities led the advisory league tables for 21Q1, advising on 6 deals valued at US24.1 billion
- Citi and Guggenheim Securities rounded out the top three financial advisors
Data/ Charts: Refinitiv
Commentary: Matt Toole, Director of Deals Intelligence, Refinitiv
Volumes of sustainable debt surpassed $1.6 trillion in 2021.
The consolidated quote system for corporate bonds has raised funds to expand outside the US.
It is important to maintain the voluntary nature of the standard.
Proposed changes would lead to an unsustainable level of additional cost and liability for issuers.
Bond funds saw strongest inflows since 2016.