Growth in green bond issuance has been extraordinary given they offer no credit enhancement to other bonds and carry additional reporting requirements. Demand from investors with an environmentally- focussed agenda appears to be driving green bond prices to a premium. A potential opportunity exists to identify ‘unlabelled’ debt, supportive of a sustainable future but not carrying the green bond premium. While labelled green bond growth may no longer be exponential, a clear trend is in place for more sustainability issuance, likely through more diverse instruments.
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