Photo by: anatoliy_gleb / iStock
Until recently, there has been explosive growth in green bonds globally. At the end of 2021, the global green bond market was over $1 trillion. By comparison, in 2017, the global green bond market was only around $200 million. In other words, the market grew fivefold.
In the first half of 2022, growth stalled due to general political tensions. According to our forecast, the global market will be around $1 trillion by the end of the year.
As for Russia, in 2019 green bonds worth 126 billion rubles were placed on the Moscow Exchange. In 2022, we expect bonds worth 70 billion roubles (including those already issued) to enter the Russian market. Among other things, green bonds have been issued by such corporations as VEB.RF and DOM.RF.
We expect several more major companies in the telecom, real estate and banking sectors to issue green and social bonds this year. This is facilitated by a reduction in the Central Bank’s key rate.
For 2023, it is difficult to predict. However, we can already say that the issuers will mostly be corporations with state participation that are interested in sustainable development. It should also be understood that this market is developing without government support or preferences.
Cover photo: AleksandarNakic / iStock
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