Italian bank UniCredit SpA said it expects total issuance volume for green bonds to reach a record $130 billion in 2018, up 9% from $119 billion in 2017.
"We are seeing an uninterrupted upward trend in green bonds and expect the strong growth in issuance activity to continue," said Antonio Keglevich, UniCredit's head of green bond origination. The Italian lender expects a "very substantial" share of placements to originate in Europe, where 49% of total issuance was made in 2017, followed by Asia at 27% and North America at 13%.
Private banks and private sector firms, which each accounted for nearly 25% of all green bond issuance for the year, have become the most important market participants, UniCredit noted. Sovereign green bond issuances are also expected to continue gaining significance in 2018.
