UK sustainable finance bond issuance climbs to £10bn in 2020
UK sustainable finance bond issuance hit a record of £10bn in proceeds last year, raising double of what was raised in a far less turbulent 2019, Refinitiv data found.
The UK ranked sixth in Europe and ninth in the world for sustainable finance issuance, achieving multiple record highs thanks to sovereigns, multilaterals and banks pushing an increase in capital in response to Covid recovery.
Sustainable finance bonds saw its second highest quarter on record, totalling £2.8bn in the last quarter of 2020.
Head of M&A and capital raising at Refinitiv Cornelia Andersson said: “We’ve seen record levels of UK sustainable finance issuance across the board in 2020, with a resurgent market for green bonds along with bond issuance earmarked for sustainable and social purposes now representing a significant portion of the market.”
The UK accounted for 36 per cent of the sustainable finance bond market last year, a stark contrast to 2019’s five per cent, issuing £3.6bn in bonds.
Green bond issuance in the UK also hit an all-time record with an increase to £4.1bn last year from £3.8bn in 2019.
Barclays secured the top spot for UK sustainable finance bond underwriting with 9.7 per cent market share last year, an increase from 8 per cent compared to 2019.
“Recent announcements from the government indicate a strong level of political support which’ll enable the growth of sustainable businesses along with new innovative fundraising mechanisms.
“This should allow the sustainable finance market to flourish and see the UK rise up the rankings by the end of the year,” Andersson said.
Sustainability and social bond categories also both surpassed $100bn for the first time globally.