04.11.2022

Sustainable Bond Issuance Has First Year-on-Year Decline

04.11.2022

From Refinitiv Deals Intelligence

 Debt Capital Markets

  • Sustainable Finance bonds totalled US$231.7 billion during the first quarter of 2022, a decrease of 19% compared to first quarter of 2021 and the first year-over-year decline since records began.
  • During the first quarter of 2022, Green bond issuance totalled US$110.4 billion, a 7% decline compared to 2021 levels and a two-year low.
    • Despite a year-over-year decline from the first quarter of last year, Green bond proceeds surpassed US$100 billion for the fifth consecutive quarter.
  • Social bond issuance totalled US$44.0 billion during the first quarter of 2022, a 52% decline compared to the first quarter of last year.
    • Compared to the fourth quarter of 2021, Social bond issuance more than doubled during the first quarter.
  • Sustainability bond issuance reached US$41.7 billion during the first quarter of 2022, a 15% decline compared to the first quarter of last year.
  • Registering a 5% increase compared to a year ago, Corporate issuers accounted for 63% of issuance during the first quarter of 2022, up from 48% a year ago.
  • European issuers accounted for the largest regional market for Sustainable Finance bonds with 50% market share during the first quarter of 2022, compared to 23% from the Americas and 21% from Asia Pacific.
  • JP Morgan maintained the top spot for Sustainable Finance bond underwriting with 6.4% market share during the first quarter of 2022, a decrease of 0.2 market share points compared to a year ago.
    • BNP Paribas and HSBC rounded out the top three bookrunners during the first quarter.

Syndicated Loans

  • Sustainable lending totalled US$122.9 billion during the first quarter of 2022, a 14% decline compared to the first quarter of 2021 and a two-year low.
  • American borrowers accounted for 43% of overall sustainable lending during the first quarter of 2022.
    • Europe accounted for 34% of first quarter 2022 activity, the lowest quarterly percentage since records began, while Asia Pacific lending accounted for 17%.
  • BofA Securities maintained the top spot for sustainable syndicated loan mandated arrangers during the first quarter of 2022, with 7.0% market share, an increase of 0.4 market share points, followed by JP Morgan with 6.0% and Mizuho Financial Group with 5.1%.

Equity Capital Markets

  • Equity Capital Markets activity for sustainable companies totalled US$13.6 billion during the first quarter of 2022, an increase of 4% compared to the first quarter of 2021 and an all-time annual record.
  • Asia Pacific accounted for 92% of overall equity capital markets activity during the first quarter of 2022, with five of the top 10 offerings of the quarter.
    • Morgan Stanley, Goldman Sachs and BofA Securities topped the list of bookrunners for sustainable equity offerings during the first quarter of 2022, registering a combined market share of 26%.

Mergers & Acquisitions

  • Mergers & Acquisitions activity involving sustainable companies totalled US$40.4 billion during the first quarter of 2022, a 37% decline compared to the first quarter of 2021 and a two-year low. Just over 330 deals were announced during the first quarter of 2022, a 24% increase compared to a year ago and an all0time first quarter hight.
  • There were no sustainable acquisitions by SPACs during the first quarter of 2022.
  • SPAC business combinations with sustainable companies totalled US$39.2 billion during the first quarter of 2021, accounting for 61% of sustainable deal making a year ago.
  • Based on deal making involving targets or acquirors operating in sustainable industries, Goldman Sachs led the advisory league tables during the first quarter of 2022, advising on two deals valued at US$24.4 billion.
    • Morgan Stanley, Barclays, Centerview Partners and JP Morgan rounded out the top financial advisors.

Read Full report here 

Source: Refinitiv Deals Intelligence

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