Green bond market down 30% in Q3 even as social bonds flourish

摘要

During the third quarter of 2018 issuers brought to market 30% fewer green bonds than in the prior quarter, deflating expectations that 2018 annual totals might outpace the record growth the market saw in 2017. In contrast, Moody’s Investors Service said in a Nov. 6 report that related social and sustainability-labeled bond products are growing in popularity. Bonds are a form of debt securities used to finance or refinance projects in which an issuer such as a corporation, municipality or a sovereign government borrows money from investors for a defined amount of time at a variable or fixed interest rate. A green-labeled bond means that the issuer has earmarked the proceeds to go to new or existing projects that meet specific environmental objectives such as offsetting carbon dioxide emissions.