Why investor appetite for sustainability-linked bonds is growing - BNP Paribas Asset Management

Despite representing a relatively small proportion of sustainable bond issuance today, sustainability-linked bonds (SLBs) are rapidly becoming more popular. Xuan Sheng Ou Yong, Green Bonds and ESG Analyst at BNP Paribas Asset Management, looks at these performance-linked securities and their advantages and disadvantages.

Only members with restricted access (ie. academics, asset owners, government and regulatory, independent advisers/trustees and sponsoring employers) can view this article. Please login or join to view.

... Climate action is high on everyone’s agenda, and as such, there is a lot of focus on green bonds. The COVID-19 pandemic has also shone a light on social bonds – securities designed to fund measures aimed at addressing social issues including the impact of the coronavirus.

Sustainability bonds, those that include both green and social use of proceeds, are also in vogue. There is, however, another member of this increasingly diverse club – sustainability-linked bonds. What are they, and why is their popularity growing?

Learn more here