Emerging Market Green Bonds 2023

May 22, 2024

Issuance of green, sustainability, sustainability-linked and social (GSSS)  bonds in emerging markets surged in 2023.

The sixth edition of the IFC-Amundi Green Bond report shows sovereign, financial and corporate borrowers sold 45 percent more of the securities to investors than they did the previous year.

Furthermore, demand for sustainable securities from portfolio investors looking to diversify into emerging markets means this growth has further to run. Amundi’s central forecasts suggest GSSS bond sales will grow at around 7 percent per year through to 2025.

A rebound in emerging market GSSS bond issuance can be attributed in part to improved sentiment after the inflationary stresses of 2022. Much of the credit can also go to a maturing of the asset class as an established part of the international financial system.

This bodes well for green transitions in developing countries, unlocking new sources of finance to fund efforts to meet climate commitments and build resilience.

Key Highlights for 2023