Importance of green bonds in the ESG government bond segment continues to grow

Highlights:

• EA ESG government bond issuance has been in line with expectations in 2024 so far and is currently slightly ahead of 2023 ytd, with sovereigns having issued more and SSA (supranationals, sub-sovereigns, and agencies) issuers less than last year. We forecast the SSA sector to catch up after the summer break.
• Most ESG bonds continue to exhibit a greenium, although it varies considerably from issuer to issuer. Generally, the greenium has fallen slightly since the beginning of the year.
• The EU continues to push ahead with the green bond issuance programme. We expect it to become the largest issuer of green bonds in the course of 2025.
• Developments in the European market are broadly in line with the global trend. The importance of green bonds is growing worldwide. The issuance volume in 2024 is likely to be in line with that of last year.

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