Analysis: European governments defy market volatility with green bond bonanza

  • 📰 Reuters
  • ⏱ Reading Time:
  • 37 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 18%
  • Publisher: 97%

South Africa News News

South Africa South Africa Latest News,South Africa South Africa Headlines

Euro zone governments have raised 15 billion euros ($15 billion) from green bonds over the last two weeks, pushing volumes above a year ago even as heightened volatility cuts issuance in the broader market.

High inflation and rapidly rising interest rates have injected a level of turbulence into world markets not seen for years, leading to caution generally among borrowers.

Governments in the euro market have raised over 40 billion euros from green bonds so far this year, according to ING Bank, just above the 39 billion in the comparable period of 2021. It has cut its forecast for overall green bond sales this year to $500 billion, down around 10% from last year. While companies are often opportunistic borrowers and more likely to change funding plans as market conditions change, sovereigns - having to fund state budgets - are less flexible.

"When I look at our strategies for green bonds, we have record inflows this year, which is remarkable because with most regular fixed income strategies they are all facing outflows," said NN Investment Partners' Bos.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

They are about to enter a desperately cold winter with far less energy than they need and STILL they hitch their wagon to that horse...

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 2. in ZA

South Africa South Africa Latest News, South Africa South Africa Headlines