THE GREEN bond market is set to shrug off wider economic uncertainty to grow to a record size in 2019, according to Standard & Poor’s research.
In a report published on Tuesday, S&P Global Ratings said that it believes that strong market fundamentals and a continuous stream of new issuers and financing instruments may push green issuance to around $180bn (£137bn) in 2019 from a record-high $167bn in 2018.
An increased focus on sustainable finance will boost green bond issuance, the ratings agency said.
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“Despite slowing global issuance overall and the likelihood of a shift in the credit cycle, our forecast suggests that the labeled green bond market may grow by a healthy eight per cent in 2019,” the report said.
“We expect financial institutions in particular to continue to increase their share of green bond issuance in the coming years, as investment needs for the transition to a low-carbon economy increase.
“Beyond the green bond market, we also foresee the issuance of other sustainability-related financing instruments, such as environmental, social, and governance (ESG) bonds, accelerating.”
Away from the debt capital markets, retail investors are able to tap into green bonds on a number of crowdfunding platforms in the UK, including Abundance, Lendahand Ethex and Downing Crowd.