Latest news with #greenbonds
Yahoo
13 hours ago
- Business
- Yahoo
Green bond issuance dives almost a third amid climate backtracking
LONDON (Reuters) -The amount of "green" bonds sold by governments, banks and companies has slumped by almost a third this year amid the rollback of climate change policies in the United States and Europe, new figures show. Data published by Fitch Ratings agency showed overall "labelled" bond issuance, which also includes other types of sustainability-focused bonds, was down 25% year-on-year to $440 billion, with Q2 also the weakest quarter since 2019. Green bonds - where the money raised is earmarked for environmental or climate projects - had a near $100 billion, or 32%, drop in the year, while the overall share of environmental, social and governance-labelled bonds has fallen back to 10.2% of total global bond issuance from 11.7% for 2024. The drop off comes as the U.S. under President Donald Trump withdraws from a raft of global sustainability initiatives and rolls back environmental standards. European Union policymakers are also negotiating proposals that would loosen the bloc's corporate sustainability reporting rules for a large majority of businesses. Fitch said the main factor impacting the market was the uncertainty around capital expenditure, driven by macro challenges and geopolitical instability. "Ongoing uncertainty over ESG-related regulations – amid implementation delays and rollbacks in the U.S. and EU – may be prompting issuers to wait for regulatory clarity," it added.
Reuters
13 hours ago
- Business
- Reuters
Green bond issuance dives almost a third amid climate backtracking
LONDON, July 23 (Reuters) - The amount of "green" bonds sold by governments, banks and companies has slumped by almost a third this year amid the rollback of climate change policies in the United States and Europe, new figures show. Data published by Fitch Ratings agency showed overall "labelled" bond issuance, which also includes other types of sustainability-focused bonds, was down 25% year-on-year to $440 billion, with Q2 also the weakest quarter since 2019. Green bonds - where the money raised is earmarked for environmental or climate projects - had a near $100 billion, or 32%, drop in the year, while the overall share of environmental, social and governance-labelled bonds has fallen back to 10.2% of total global bond issuance from 11.7% for 2024. The drop off comes as the U.S. under President Donald Trump withdraws from a raft of global sustainability initiatives and rolls back environmental standards. European Union policymakers are also negotiating proposals that would loosen the bloc's corporate sustainability reporting rules for a large majority of businesses. Fitch said the main factor impacting the market was the uncertainty around capital expenditure, driven by macro challenges and geopolitical instability. "Ongoing uncertainty over ESG-related regulations – amid implementation delays and rollbacks in the U.S. and EU – may be prompting issuers to wait for regulatory clarity," it added.
Zawya
14-07-2025
- Business
- Zawya
Saudi accounts for two-thirds of Mena's H1 sustainable bonds
Annual issuances of green social, sustainable, and sustainability-linked bonds (GSSS) in the Middle East and North Africa (Mena) reached $9.47 billion in the first six months of 2025, down slightly from the same period of last year ($ 9.91 billion), according to data from Bloomberg's Capital Markets League Tables. Higher global interest rates and a pause in deals from Egypt and Qatar offset strong Saudi and UAE supply, keeping regional volumes broadly unchanged from H1 2024. Investors digested the heaviest pipeline in 2023, when issuances surged to their highest levels due to COP28 taking place in the region. Saudi Arabia and the UAE accounted for all issuances in H1 2025. Saudi Arabia surged to the top of regional league tables, accounting for 66% of total issuances ($6.25 billion) in the first six months of 2025. The 25% increase on the same period of 2024 was driven by Vision 2030 infrastructure spending. The largest issuance came from the Saudi government ($1.58 billion), while Al Rajhi issued two sustainable sukuks ($1.5 billion and $200 million respectively). Other green and sustainable sukuk issuers include Saudi Electricity (1.25 billion), and debut issuances from Alinma ($500 million) and SAB's AT1 issuance ($650 million). The UAE accounted for the remaining 34% of issuances ($3.22 billion). Key transactions included debut issuances from National Central Cooling ($700 million) and Omniyat ($500 million). The majority of Mena sustainable debt issuances during the period were Islamic instruments ($6.8 billion), with the 17% year-on-year increase reflecting the emergence of Saudi Arabia and the UAE as global Islamic finance centers. The period was also notable for the significant growth in AT1 issuances, which accounted for $3.15 billion of sales, the highest level seen in the last five years. AT1 issuances are a key way for banks to comply with the Basel 3 framework ahead of the initial phase in dates of 2026. They witnessed strong investor demand in the UAE from regional and international investors. Venty Mulani, Data Specialist - Sustainable Fixed Income, Bloomberg LP, said: 'The sustainable bond market in Saudi Arabia and the UAE continues to mature and evolve. As reporting improves, with Bloomberg data suggesting nearly 68% of issuances over the past three years have either an impact or allocation report, we look forward to seeing more transparency through innovations such as green digital bonds.'
Arabian Business
14-07-2025
- Business
- Arabian Business
Saudi Arabia, UAE leads $9.47bn MENA sustainable bond market in H1 2025
Issuances of green, social, sustainable, and sustainability-linked (GSSS) bonds in the Middle East and North Africa (MENA) reached $9.47 billion in the first half of 2025, according to Bloomberg's Capital Markets League Tables. The total marked a slight decline from the same period in 2024, when issuances stood at $9.91 billion. Higher global interest rates and a pause in deals from Egypt and Qatar contributed to the lower volume, despite continued activity in Saudi Arabia and the UAE. The first half of 2025 saw all regional issuances originate from the two Gulf countries, with Saudi Arabia leading. Saudi Arabia, UAE drive all MENA GSSS bond issuances Saudi Arabia accounted for 66 per cent of total issuances, or $6.25 billion, in the first six months of 2025. This represented a 25 per cent increase compared with the same period in 2024, supported by infrastructure spending under Vision 2030. The largest single issuance came from the Saudi government, at $1.58 billion. Al Rajhi Bank issued two sustainable sukuks, worth $1.5 billion and $200 million, respectively. Other Saudi-based issuers included Saudi Electricity ($1.25 billion), Alinma Bank with a debut sustainable sukuk of $500 million, and Saudi Awwal Bank (SAB) with an Additional Tier 1 (AT1) issuance of $650 million. The UAE made up the remaining 34 per cent of MENA issuances, totalling $3.22 billion. Key transactions included debut issuances from National Central Cooling Company ($700 million) and property developer Omniyat ($500 million). Islamic instruments dominated GSSS debt issuance during the period, with $6.8 billion in total, representing a 17 per cent increase compared to the first half of 2024. This reflected the growing role of Saudi Arabia and the UAE in global Islamic finance. The period also saw an increase in AT1 issuances, which reached $3.15 billion—the highest level recorded in the past five years. These instruments are used by banks to meet Basel 3 requirements ahead of the 2026 deadlines. The UAE saw strong investor demand for these issuances from both regional and international investors. 'The sustainable bond market in Saudi Arabia and the UAE continues to mature and evolve. As reporting improves, with Bloomberg data suggesting nearly 68 per cent of issuances over the past three years have either an impact or allocation report, we look forward to seeing more transparency through innovations such as green digital bonds,' Venty Mulani, Data Specialist – Sustainable Fixed Income, Bloomberg LP said. Bloomberg's league tables provide access to data on capital markets representation and are available via the Bloomberg Terminal under LEAG. ESG data is available under BI ESG. Allocation and impact data on MENA GSSS bond issuances can also be accessed through the Terminal.
Bloomberg
10-07-2025
- Business
- Bloomberg
US ESG Market Is Dominated by Foreign Companies More Than Ever
The US market for sustainable bonds is being crowded by foreign companies this year more than ever, as political backlash and negligible pricing benefits continue to keep American companies on the sidelines. Foreign firms account for 89% of green, social, sustainability and sustainability-linked corporate-securities sales in dollars this year, up from 76% through the first half of last year and just 30% in 2020, BloombergNEF data through the end of June shows.
