Boom time for ESG bonds: Time to get excited as new products enter the market?

Investors take to socially responsible vehicles

clock
Mario Eisenegger of M&G
Image:

Mario Eisenegger of M&G

Burgeoning investor demand for sustainable investment products has spurred significant growth in the issuance of ESG bonds.

Corporate issuers have sought new ways to access increasingly ESG-conscious capital markets with innovations in financing that take various forms. Green bonds are the most established ESG bond market element. Typically financing projects such as renewable energy or electric vehicle charging stations, they have continued to experience rapidly growing issuance. Initiatives such as the European Union Green Deal, China's recent pledge for carbon neutrality by 2060, and US President Joe Biden's $2trn green energy and infrastructure plan, are likely to propel further market growth ahead. ...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Bonds

Four graphs explaining... fixed income

Four graphs explaining... fixed income

Four experts write

Investment Week
clock 08 August 2022 • 3 min read
Arthur Lau of PineBridge Investments

Asia Fixed Income: on a firm foundation

US interest rates little impact

Arthur Lau
clock 20 July 2022 • 3 min read
Mark Holman, portfolio manager at TwentyFour Asset Management

TwentyFour's Holman: How to prep your bond portfolio for recession

The first half of 2022 was one of the most painful periods in living memory for financial markets.

Mark Holman
clock 19 July 2022 • 4 min read
Trustpilot