Social bond issues have exploded in one year

Posted on Apr 13, 2021 8:26 AM

Within the universe of “ESG” bonds (with an environmental, social or governance vocation), social bonds have long been seen as a poor relation. But these titles have experienced a tremendous boost with the Covid-19 crisis. And for good reason. These social obligations are intended to finance projects, particularly in the field of health, employment, or the fight against poverty.

From 2017 to 2019, social bonds represented between 6 and 8% of ESG emissions, testifies Paula Dunin-Wasowicz, at Société Générale. This proportion rose to 30% last year, and even to 35% for the first quarter of 2021. “Volumes, for their part, have increased more than sevenfold to reach nearly $ 150 billion in 2020.” This year, social bond issues could reach 250 billion euros, says Nicolas Forest at Candriam. It really has become a new market segment. ”And this, without counting the“ sustainable ”obligations which combine environmental and social objectives.

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