Green Bonds Boom Set Hit A Record This Year

The green bonds boom is only growing in size.

Today, rating agency Moody’s reported that green bond issuance hit a record high in the third quarter of this year demonstrating the expanding demand for ethically-labeled fixed-income instruments from investors.

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Green bonds were created to fund projects that have positive environmental and climate benefits with the majority of bonds issued use of proceeds” or asset-linked bonds. Proceeds from these bonds are earmarked for green projects but are backed by the issuer’s entire balance sheet.

According to the Moody’s report, $32.7 billion of green bonds were issued globally in the three months to end-September, topping the $32.2 billion raised in the second quarter of the year. 83 issuers brought 111 transactions to market, with average transaction...