Global sustainable issuance more than doubled to $US1.64 trillion in 2021, from $US761 billion issued in 2020. According to the latest data from Bloomberg New Energy Finance, the total global sustainable debt market now exceeds $US4 trillion.
The International Energy Agency estimates to reach net-zero emissions by 2050, global investment in clean energy will need to more than triple by 2030 to around $US4 trillion per year.
Green bonds continue to dominate in terms of issuance format, primarily driven by sovereigns and government issuers. Notably, the UK’s GBP6 billion 32-year green gilt was 12 times oversubscribed.
Airport Authority Hong Kong debuted a multi-tranche $US4 billion green bond with the order book exceeding $US11 billion. ANZ acted as joint associate sustainability structuring advisor on that deal, as well as joint lead manager and bookrunner.
Sustainability-linked loans (SLL) remain the second-largest format in the market. In the fourth quarter of 2021, Metlifecare completed New Zealand’s largest ever sustainable refinancing with a $NZ1.25 billion SLL. ANZ was joint sustainability coordinator, as well as joint mandated lead arranger and bookrunner for this transaction.
In Australia, Intellihub Group received a world first Electrical Grids and Storage Certification under the Climate Bonds Standard for its green loan. The $A1.45 billion five-year green loan will fund the rapid rollout of smart meters to homes across Australia and New Zealand. ANZ acted as sole green loan coordinator on the deal.
Read the latest ANZ Sustainable Insights Newsletter for more insights into the sustainable finance market.
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