Q2 2023 Sustainability Muni Recap

S&P Global Market Intelligence Global Markets Group's municipal bond analysts have reviewed Q2 2023 municipal bond new issue data and analytics to identify the quarter's sustainable issuance trends. Our data indicates that sustainable municipal bonds issuance (including corporate issues) declined 14% from $11.6B in Q2 2022 to $10.0B in Q2 2023 while the overall muni issuance only declined by 8% Y/Y, from $116.0B in Q2 2022 to $107.0B in Q2 2023, marking a surprising deceleration of sustainable municipal issuance.

Sustainable Issuance by Type

Green Bonds represented the largest share of Sustainable issuance, accounting for $4.3B, or 37% of Sustainable issuance in Q2 2023. The largest green bond issued during Q2 2023 was The California Community Choice Financing Authority's $958.29M Clean Energy Project Revenue Bonds, Series 2023D (Green Bonds) sold on 6/7/2023.

Sustainable Issuance by Coupon Maturity

Sustainable Issuance by Coupon and Maturity

Social and Sustainability bonds' coupons were spread across 3% to 6% range while Climate and Green bonds' coupons were concentrated at the 5% to 6% cohort.

Sustainable Issuance by Verifier, Type, and Maturity

Sustainable Issuance by Sector

The Housing sector represented the greatest portion of Sustainable bonds by sector with $4.7B issued, led by the $592.725M New York City Housing Development Corporation, Multi-Family Housing Revenue Bonds, 2023 Series A-1 & A-2 (Sustainable Development).

Sustainable Issuance by State

NY led the Sustainable issuance in Q2 2023 with over $2.6B of issuance.

Verifier vs Self

Majority of Sustainable issuance was self-verified in Q2 2023. Meanwhile, Kestrel Verifiers accounts for the bulk of the third-party verified issuance.

Top 10 Underwriters for Sustainable Issuance by Par Amount

Sustainable Issuance by Tax Status

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This article was published by S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.