The global issuance of sustainable bonds is expected to reach between $900 billion and $1 trillion in 2023 driven by increased demand, energy transition efforts and climate supportive policies, a new report said.
Green, social, sustainable and sustainability-linked bonds issued this year are expected to be worth close to the $1 trillion mark reached in 2021, according to the latest report from S&P Global Ratings.
GSSSB will account for 14 per cent to 16 per cent of the total bonds issued this year, it added.
“GSSSB issuance captured almost 13 per cent of total global bond issuance from January 1 to June 30 this year and … will continue to outpace traditional bond issuance for the rest of the year – reaching its highest-ever percentage of global bond issuance,” S&P said.
Countries across the globe are enacting climate-friendly policies aiming to reduce greenhouse gas emissions, boosting demand for sustainable bonds.
Several nations have set net-zero targets and have stepped up efforts to cut emissions.
Green bond issuance in the first half of 2023 reached a record $310 billion, comprising 59 per cent of the GSSSB market in 2023 so far.
Green bonds are “likely to continue to dominate the market", while sustainability-linked bond issuance is set to decline amid “questions regarding the credibility of targets persist", the report said.
Green bonds are instruments that raise funds for projects with environmental benefits, including renewable energy, green buildings and sustainable agriculture.
S&P expects sovereign green bond issuance to "increase notably this year", with the $80 billion of issuance in the first half already crossing the full-year total for 2022.
Green bond issuance in the Middle East has also reached new highs this year, at $13 billion so far.
“This is more than the region's entire GSSSB issuance last year,” the rating agency said.
In July, Abu Dhabi clean energy company Masdar raised $750 million through the sale of 10-year senior unsecured notes to help it fund renewable energy projects. It listed its first green bond on the London Stock Exchange in August.
In April, Abu Dhabi National Energy Company, better known as Taqa, also raised an aggregate $1.5 billion through dual tranche bond issuances, including its first green bond, as it continues to invest in expansion and diversify its sources of funding.
Saudi Arabia’s Public Investment Fund also raised $5.5 billion through the sale of a green bond as the Arab world's largest economy continues to focus on building new renewable energy projects and reaching net zero by 2060.
In the Middle East, sustainable bond issuance more than tripled to reach $15.4 billion in the first half of 2023, S&P said. Most issuances involved governments as key stakeholders and were green bonds.
Three issuances by the PIF accounted for 36 per cent of the total.
"The region also benefits from continued issuances in the UAE, and new issues in Turkey and Jordan. The UAE and Saudi Arabia capture more than 80 per cent of total GSSSB issuance in the region. We expect this trend to continue into 2024," S&P said.
S&P expects to see higher volumes of sustainability-linked sukuk in the Middle East as issuers meet investor demands and core Islamic finance countries seek to reduce their carbon footprints.
"We think Cop28 in the UAE could shine a light on the opportunities offered by Islamic finance and sukuk to finance initiatives related to the climate transition," the report said.
Europe, meanwhile, will remain the leading region for GSSSBs, according to the report.
GSSSB issuance in Europe in the first half reached $269 billion, surpassing the previous first-half record of $262 billion reached in 2021 and accounting for more than 50 per cent of global issuance for the first time.
Green bond issuance pushed up the total GSSSB volume in Europe, with Germany ($15 billion), Italy ($13 billion), the UK ($10 billion), France and Austria ($6 billion each) accounting for most of the issuances in the six month period to the end of June.
“Efforts to accelerate the energy transition were the primary reason for issuance growth,” the report said.
In North America, overall issuance has contracted significantly since 2022, reaching only $55 billion so far in 2023. This is just over a third of the amount raised in 2022, and less than a third of the amount recorded in 2021.
“The decline can be attributed to a general bond market hesitancy among US investors after the fall of regional banks such as Silicon Valley Bank in March, the prolonged US debt ceiling debate and some states implementing policies that hinder supply and demand for GSSSB,” the report said.
Going forward, S&P expects GSSSB issuance to grow in 2023.
“We believe that despite potential headwinds, 2023 will be the second-largest year for GSSSB issuance, nearly reaching the high of 2021,” it said.
“Though short-term interest rates may continue to rise in many major economies, long-term rates have largely stabilised, reflecting market sentiment that inflation may soon get back under control and creating a favourable environment for increased GSSSB issuance through the end of the year.”
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UAE currency: the story behind the money in your pockets
Wednesday's results
Finland 3-0 Armenia
Faroes Islands 1-0 Malta
Sweden 1-1 Spain
Gibraltar 2-3 Georgia
Romania 1-1 Norway
Greece 2-1 Bosnia and Herzegovina
Liechtenstein 0-5 Italy
Switzerland 2-0 Rep of Ireland
Israel 3-1 Latvia
THE CLOWN OF GAZA
Director: Abdulrahman Sabbah
Starring: Alaa Meqdad
Rating: 4/5
Five famous companies founded by teens
There are numerous success stories of teen businesses that were created in college dorm rooms and other modest circumstances. Below are some of the most recognisable names in the industry:
- Facebook: Mark Zuckerberg and his friends started Facebook when he was a 19-year-old Harvard undergraduate.
- Dell: When Michael Dell was an undergraduate student at Texas University in 1984, he started upgrading computers for profit. He starting working full-time on his business when he was 19. Eventually, his company became the Dell Computer Corporation and then Dell Inc.
- Subway: Fred DeLuca opened the first Subway restaurant when he was 17. In 1965, Mr DeLuca needed extra money for college, so he decided to open his own business. Peter Buck, a family friend, lent him $1,000 and together, they opened Pete’s Super Submarines. A few years later, the company was rebranded and called Subway.
- Mashable: In 2005, Pete Cashmore created Mashable in Scotland when he was a teenager. The site was then a technology blog. Over the next few decades, Mr Cashmore has turned Mashable into a global media company.
- Oculus VR: Palmer Luckey founded Oculus VR in June 2012, when he was 19. In August that year, Oculus launched its Kickstarter campaign and raised more than $1 million in three days. Facebook bought Oculus for $2 billion two years later.
The biog
Name: Abeer Al Shahi
Emirate: Sharjah – Khor Fakkan
Education: Master’s degree in special education, preparing for a PhD in philosophy.
Favourite activities: Bungee jumping
Favourite quote: “My people and I will not settle for anything less than first place” – Sheikh Mohammed bin Rashid.
Five expert hiking tips
Always check the weather forecast before setting off
Make sure you have plenty of water
Set off early to avoid sudden weather changes in the afternoon
Wear appropriate clothing and footwear
Take your litter home with you
Ms Yang's top tips for parents new to the UAE
- Join parent networks
- Look beyond school fees
- Keep an open mind
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Dengue%20fever%20symptoms
%3Cp%3EHigh%20fever%20(40%C2%B0C%2F104%C2%B0F)%3Cbr%3ESevere%20headache%3Cbr%3EPain%20behind%20the%20eyes%3Cbr%3EMuscle%20and%20joint%20pains%3Cbr%3ENausea%3Cbr%3EVomiting%3Cbr%3ESwollen%20glands%3Cbr%3ERash%26nbsp%3B%3C%2Fp%3E%0A
A State of Passion
Directors: Carol Mansour and Muna Khalidi
Stars: Dr Ghassan Abu-Sittah
Rating: 4/5
MATCH INFO
New Zealand 176-8 (20 ovs)
England 155 (19.5 ovs)
New Zealand win by 21 runs
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
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Conflict, drought, famine
Estimates of the number of deaths caused by the famine range from 400,000 to 1 million, according to a document prepared for the UK House of Lords in 2024.
It has been claimed that the policies of the Ethiopian government, which took control after deposing Emperor Haile Selassie in a military-led revolution in 1974, contributed to the scale of the famine.
Dr Miriam Bradley, senior lecturer in humanitarian studies at the University of Manchester, has argued that, by the early 1980s, “several government policies combined to cause, rather than prevent, a famine which lasted from 1983 to 1985. Mengistu’s government imposed Stalinist-model agricultural policies involving forced collectivisation and villagisation [relocation of communities into planned villages].
The West became aware of the catastrophe through a series of BBC News reports by journalist Michael Buerk in October 1984 describing a “biblical famine” and containing graphic images of thousands of people, including children, facing starvation.
Band Aid
Bob Geldof, singer with the Irish rock group The Boomtown Rats, formed Band Aid in response to the horrific images shown in the news broadcasts.
With Midge Ure of the band Ultravox, he wrote the hit charity single Do They Know it’s Christmas in December 1984, featuring a string of high-profile musicians.
Following the single’s success, the idea to stage a rock concert evolved.
Live Aid was a series of simultaneous concerts that took place at Wembley Stadium in London, John F Kennedy Stadium in Philadelphia, the US, and at various other venues across the world.
The combined event was broadcast to an estimated worldwide audience of 1.5 billion.
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