Oct 24, 2019

Green and sustainability debt is growing fast

Reproduced from Institute of International Finance; Chart: Axios Visuals

Green financial instruments continue to see widespread adoption and diversification, in terms of both instruments and geographies.

What's happening: Total green and sustainability debt issuance in 2019 is poised to double levels from 2017 and will be almost four times the level issued as recently as 2016, according to projections from the Institute of International Finance.

  • The green bond market is still largely concentrated in a few countries and sectors but is growing quickly.
  • One example: Kenyan property developer Acorn Holdings recently issued $41 million of debt to fund environmentally friendly student housing in Nairobi.

What they're saying: "At around $155 billion year to date (50% higher than the same period of 2018), green bond issuance is dominated by the U.S. and Europe, with public sector entities, utilities and banks leading the way. However, new entrants continue to make their green bond debuts," IIF economists wrote in a recent note to clients.

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Filling in the blanks on the Green New Deal

Illustration: Sarah Grillo/Axios

Sen. Bernie Sanders (I-Vt.) and Rep. Alexandria Ocasio-Cortez (D-N.Y.) on Thursday unveiled a 10-year plan to spend up to $180 billion to decarbonize and overhaul the nation's public housing.

Why it matters: The lawmakers are calling the proposed bill the first attempt from Green New Deal sponsors to begin adding legislative details to the sweeping concept.

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Global debt expected to exceed $255 trillion by end of 2019

Global debt surged by $7.5 trillion in the first half of the year, hitting a new record of more than $250 trillion, data released Thursday from the Institute of International Finance shows.

Why it matters: The world's debt has now risen to 320% of what it produces, the highest level ever recorded — and IIF economists say they see "no sign of a slowdown." They expect the global debt load to exceed $255 trillion by the end of the year, with the U.S. and China leading the way.

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The ultralong bond is back in consideration as deficits rise

Photo: Chen Mengtong/China News Service/VCG/Getty Images

The Treasury Department announced Wednesday that it was looking into releasing two new maturities — a 50-year and 20-year bond.

Why it matters: The new issues would help offset the increasing share of Treasuries that U.S. financial institutions have had to buy recently, largely as a result of decreasing foreign buyers and the Trump administration's increasing deficits.

Go deeperArrowOct 31, 2019