Global sustainable debt issuance reached a record high of US$465 billion in 2019

In 2019, a record amount of sustainable debt was issued globally, reaching US$465 billion, up a staggering 78%
from US$261.
4 billion in 2018.

According to the latest data from the comprehensive sustainable debt sector held by research firm Bloomberg New Energy Finance (BNEF), the cumulative issuance of sustainable debt exceeded the $1 trillion mark last year, reaching $1.
17 trillion
by December 31.

Jonas Rooze, principal sustainability analyst at BNEF, said: "Our data shows that sustainable finance will continue to lead
globally.
Ultimately, investor concerns about the threat of climate change, as well as the perceived responsible behavior of many large corporations, banks and government leaders, have exacerbated the growth
.
”

Sustainable debt covers a variety of instruments, from well-established green bond areas to emerging categories of sustainability-related lending
.
Green bonds accounted for more than half of the overall sustainable debt market in 2019, with $271 billion issued, up from $182 billion
in 2018.

BNEF also found that the number of sustainability bonds issued in 2019 almost tripled to a record $46 billion
.
Mallory Rutigliano, Green and Sustainable Finance Analyst at BNEF, said: "This is the biggest leap forward ever for sustainable bonds and shows the interest
of borrowers and investors in securities that combine support for social and environmental activities.
”

Of all sustainability-related loans, the most spectacular growth can be seen and is now the second most popular type of thematic debt
.
Such loans, which include loans linked to borrowers' performance on determined environmental, social or governance (ESG) criteria, saw transaction volumes grow 168% to $
122 billion in 2019.

A new sustainability-related bond class
was launched in the second half of 2019.
Italian utility Enel issued four initial bonds
in the category in September and October.
The coupons on these securities are linked to
Enel's renewable energy generation targets.
Rooze commented: "This is another example of innovation that has been a hallmark of sustainability-themed debt markets over a
relatively short lifetime.
”

This innovation is widespread in Europe, where it is a pioneer in the field and still accounts for 53%
of all sustainable debt markets worldwide.
In 2019, the Europe, Middle East and Africa (EMEA) region issued $262 billion worth of shares, while the Americas region (AMER) and Asia Pacific Asia Pacific (APAC) ranked second and third with $95 billion and $80 billion, respectively
.

Another year, mortgage financier Fannie Mae became the world's largest issuer of sustainable debt, with mortgage securitization totaling $22.
8 billion.

It was followed by energy supplier Royal Dutch Shell PLC, which issued a $10 billion sustainability loan in December (the first-ever thematic instrument).

The governments of the Netherlands and France were notable sovereign issuers in 2019, with a total issuance of $13.
3 billion.

BloombergNEF's sustainable debt area includes green bonds, green loans, social bonds, and sustainable bonds, which follow the International Capital Market Association (ICMA) and the Loan Market Association (LMA), as well as sustainability-related bonds and loans
that follow the guidelines set by the LMA for the use of proceeds set by all institutions.