Green bond issuance expected to reach nearly $500 bln in 2021-SEB

Credit: REUTERS/Bob Strong

LONDON, Dec 10 (Reuters) - Issuance of green bonds, which raise money for projects with environmental benefits, is expected reach nearly $500 billion next year, analysts at Nordic corporate bank SEB SEBa.ST said on Thursday.

Green bonds are a growing category of fixed-income securities that raise capital for projects with environmental benefits, such as renewable energy or low-carbon transport.

The bonds make up a small fraction of the overall bond market, but they are attracting attention because the need to meet emissions-reduction targets will need trillions of dollars of capital from public and private sectors.

"The green bond market has just passed $1 trillion since inception and we expect next year’s issuance to be close to $500 billion," SEB analysts said in a research report.

The green bond market started up in 2007. In October, Bloomberg New Energy Finance said green bonds worth more than $200 billion had been issued so far this year.

(Reporting by Nina Chestney. Editing by Jane Merriman)

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