Russia-Ukraine conflict hurts green bond issuance in Q1 - report

Global issuance of green bonds contracted by 7% on the year to USD 110.4 billion (EUR 101.3bn) in the first quarter of 2022, Reuters reports, citing statistics by financial data provider Refinitiv.

The total volume of green, social and sustainability bonds, as well as those issued by companies with a sustainable business model, launched in the first three months of the year amounted to USD 231.7 billion. It was 19% lower than in the prior year.

The issuance of bonds linked to environmental or social goals peaked in 2021 but deals for sustainable bonds in January-March were hit by market volatility after Russia’s invasion of Ukraine and tightening monetary policy across the globe. Andrew Poreda, senior ESG research analyst at Sage Advisory Services, was quoted as saying that the appeal of renewable energy projects was reduced due to inflationary pressures, as well. He added that rising prices across the renewables value chain are not helping.

JPMorgan, BNP Paribas SA and BofA Securities were the top three green bond bookrunners in the first trimester.

(USD 1.0 = EUR 0.917)

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