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Green & other labelled debt hit 870 billion dollars
05/03/2024 Since 2 months

The Climate Bonds Initiative (CBI) released its 2023 Global State of the Market Report, where it recorded an aligned green, social, sustainability, transition, and other use-of-proceeds (known as GSS+) debt volume of 870 billion dollars (+3% YoY vs 2022 figure).

Europe was the largest source of aligned GSS+ debt instruments with volume of 405 billion dollars representing a 46% share in the 2023 total market. The Latin America and Caribbean (LAC) region with a 6% global share, delivered a strong 49% YoY growth in 2023.

Green labelled bonds accounted for 67,5% of the total GSS+ aligned volume in 2023, followed by social theme (18%), sustainability (12%), sustainability-linked bonds -SLB- (3%) and blue labelled bonds (0,7%).

The sustainability theme was backed by sovereign issuers such as Mexico, Peru, and Thailand. LAC region constitutes the largest region share (47%) in worldwide sustainability issuance, reflecting the region’s unique socio-environmental landscape, characterised by approximately 60% of the world’s terrestrial biodiversity, and a myriad of marine and freshwater species. Two LAC-based electric utilities (Electrobras from Brazil and CFE from Mexico) mobilised sustainability bonds to finance initiatives that span renewable energy, climate resilience, and expanding critical services like education and internet Access.

SLBs segment experienced a remarkable 83% increase in aligned volume, reaching 21.4 billion dollars in 2023, with deals from 32 issuers. LAC region was propelled by aligned SLB issuance from Chile (8.6 billion dollars) and four corporate issuers topped by Mexican food company Gruppo Bimbo with two deals worth the equivalent to 860 million dollars.

The sovereign GSS+ market reached a critical milestone in 2023 as Brazil became the 50th aligned issuer with its 2-billion dollars November sustainability deal.

Blue labelled bonds showed a 163% growth in 2023 summing up to 6 billion dollars worldwide. LAC region was the largest region issuer with 2,74-billion dollars’ worth placements, mainly driven by blue bond issuances from Brazilian water and sanitation firms.