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
- 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
Covid, ESG and a growing focus on data has significantly churned market share.
The proposals include giving investors better access to company and trading data.
The agencies plan to provide greater clarity throughout 2022 on certain crypto-related activities.
Kelleher retired from Morgan Stanley in June 2019 as President.
Alex Wynaendtsm, former CEO of Aegon, has been nominated to replace Paul Achleitner.