Summary
Sustainable bonds — instruments that raise funds for environmental or social projects, or with terms imposing sustainability targets on the borrower — emerged as one of the fastest-growing segments of the global fixed-income market over the past decade.
This eighth edition of the IFC-Amundi Emerging Market Sustainable Bonds Report shows investor demand has proved resilient amid solid financial returns and a growing need for the capital raised by these instruments.
But this is set against contractions in issuance of bonds carrying sustainable labels, driven by tighter disclosure requirements, the near disappearance of the pricing advantage for issuers, and rising costs.
