Climate Bonds Initiative (CBI) has published its sustainable debt market report for the first half of 2023 (H1’23). Aligned Green, Social, Sustainability, Sustainability-Linked and Transition (collectively GSS+) finance volumes reached 488 billion dollars in H1’23 (-15% YoY), surpassing the accumulated 4 trillion dollars milestone.

Green bonds accounted for 62% of total GSS+ volume, with 279 billion dollars recorded in H1’23, followed by social and sustainability debt contributing 15% and 14% respectively. EUR remained the preferred currency with 47% of aligned GSS+ volumes, as Europe holds the most advanced policy regulations which motivate issuers to price transparent and ambitious deals. Sovereign GSS+ volume amounting to 75 billion dollars was recorded by CBI in H1’23 (80% green bonds).

Some of the highlights for Latin American and the Caribbean countries included:

• Mexico experienced exceptional YoY growth of 173% in sustainability-labelled bonds, with total aligned volume of 8.2 billion dollars originating from five issuers, 62% of which came from the sovereign.

• Ecuador added an innovative blue bond through an SPV to address biodiversity through debt restructuring.

• Chile is the largest issuer of aligned sovereign social bonds and returned to the market in April with a 2033 deal. The original size was 381 million dollars and attracted bids covering the transaction more than eight times.

• Peru 2.5 billion dollars social bond targeting affordable housing.