10.12.2021

Sustainability and Social Bonds Break Records

Debt Capital Markets

  • All-time record: Sustainable Finance bonds totaled US$777.6 bn during the first nine months of 2021, an increase of 57% compared YoY
    • During 21Q3, overall Sustainable Finance bonds totaled US$229.9 bn, a 12% decreased compared to 21Q2, but marks the third highest quarterly total for Sustainable Finance bonds by proceeds and number of issues since our records began in 2015
  • All-time first half: During the first nine months of 2021, Green bond issuance totaled US$365.2bn, more than double 2020 levels
    • Green bond proceeds surpassed US$100 bn for the third consecutive quarter
    • By number of issues, Green bonds declined 22% compared to 21Q2, which ranked as the largest all-time largest quarter for Green bond issuance, by volume
  • The Sustainability and Social bond categories each set all-time records during the first nine months of 2021
    • Social bond issuance totaled US$31.1bn during 21Q3, a 36% decline compared to 21Q2
    • For first half 2021, Social bond issuance totals US$171.6bn, a 96% increase compared to 2020 levels and an all-time record
    • By number of issues, social bond volume has increased 42% compared YoY

Syndicated Loans

  • Sustainable lending totaled US$448.6bn during the first nine months of 2021, more than tripling YoY levels and setting an all-time first nine-month record
  • 21Q3 registered a 52% decrease compared to 21Q2, which ranked as the largest quarter for sustainable lending since records began in 2018

 

  • Overall sustainable lending during the first nine months of 2021: European borrowers accounted for 43% led by facilities for Italy’s Enel SpA and Belgium’s Interbrew-Simba; Americas accounted for 43% (the highest percentage since records began), while Asia Pacific accounted for 10%
  • BofA Securities moved into the top spot for sustainable syndicated loan mandated arrangers during the first nine months of 2021, with 6.2% market share, an increase of 4.1 market share points
    • Followed by JP Morgan (5.0%) and BNP Paribas (4.7%)

Equity Capital Markets

  • All-time first nine month record: ECM activity for sustainable companies totaled US$28.5bn during the first nine months of 2021, an increase of 48% compared YoY
  • By proceeds, 21Q3 sustainable equity issuance declined 60% compared to 21Q2, the slowest quarter for sustainable ECM issuance since 20Q2; By number of issues, sustainable ECM offerings declined 5% from 21Q2
  • Overall ECM activity during first nine months of 2021: Asia Pacific accounted for 40%; Americas 37%
  • Top bookrunners for sustainable equity offerings during first nine months of 2021: Morgan Stanley, Goldman Sachs and JP Morgan registering a combined market share of 28%.


Mergers & Acquisitions

  • All-time high & nearly 3x 2020 levels: M&A activity involving sustainable companies totaled US$136.1bn during the first nine months of 2021
  • 44% increase compared YoY: 798 deals were announced during first nine months of 2021
  • Number of deals: China accounted for 27% of total sustainable deal making activity during the first half followed by the United States (13%), India (7%) and Italy (5%)
  • Sustainable acquisitions by SPACs totaled US$63.0bn, or 46% of total announced M&A activity during the first nine months of 2021
  • Based on deal making involving targets or acquirors operating in sustainable industries:
    • Citi led the advisory league tables for the first nine months of 2021, advising on 22 deals valued at US$55.2bn
    • Goldman Sachs and Guggenheim Securities rounded out the top 3 financial advisors
    • Sustainability bond issuance reached US$45.2bn 21Q3, a 10% decrease compared to 21Q2
    • During the first nine months of 2021, Sustainability bonds totaled US$144.5bn, up 54% compared YoY
    • The number of Sustainability bonds increased 112% during the first nine months of 2021
  • Agency and Sovereign issuers accounted for 41% of overall activity during the first nine months of 2021, down from 53% of Sustainable Finance bond activity YoY
  • Registering a 93% increase YoY, Corporate issuers accounted for 57% of issuance, up from 46% during the first nine months of 2020.  Corporate Sustainable Finance bond offerings accounted for a record 11% of global corporate debt issuance during the first nine months of 2021, up from 5% YoY
  • European issuers accounted for the largest regional market for Sustainable Finance bonds with 56% market share during the first nine months of 2021, compared to 21% from the Americas and 19% from Asia Pacific

  • JP Morgan moved into the top spot for Sustainable Finance bond underwriting with 6.4% market share during the first nine months of 2021, an increase of 1.2 market share points compared YoY
    • BNP Paribas and Citi rounded out the top three underwriters
    • The top ten Sustainable Finance bond underwriters comprised 47.1% of the overall market during the first nine months of 2021, up from 40.3% a year ago

Source: Refinitiv

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