DBRS Morningstar Releases Commentary on Social and Sustainability Bond Growth

DBRS Morningstar released a commentary titled, “COVID-19 Linked Funding Expanding Social and Sustainability Bond Market”. This commentary focuses on the issuance of social and sustainability bonds and potential increase of supply and demand in light of the Coronavirus Disease (COVID-19) pandemic. The market for green bonds has long been the leading market for Environmental, Social and Governance (ESG)-related bond issuance. However, we expect to see an increase in interest in both social and sustainability bonds as supranational institutions, development banks, regional governments and sovereigns, as well as national and international banks approach the debt markets to fund programmes in support of health systems and economies affected by the coronavirus, with some of them issuing social bonds.

Key highlights from the commentary include
-- A discussion about how the social and sustainability bond market is expanding and expected to grow to support pandemic-related funding.
-- How supranationals have opened the door for social and sustainability bond issuance with recent transactions.
-- Why investor interest in responsible investing continues to grow, with over USD 90 trillion managed by asset managers that have signed up to the Principles for Responsible Investing.
-- Why the Social principle at the heart of ESG and the pandemic will likely be met with support with from specialist funding to help finance the impact and recovery.

Notes:
The full commentary is available at www.dbrsmorningstar.com.

For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at [email protected].

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