Annual global green bond issuance is on course to surpass a projected $200 billion total in 2019 after a record second quarter and first half, Moody's said in a new report.
In the second quarter, global green bond issuance hit a new all-time quarterly high of $66.6 billion, according to Moody's, pushing first-half issuance to $117 billion, also a record.
Issuance grew 47% year over year in the first half, up from an 11% annual increase in the year-ago period.
Corporates were the biggest contributors to second-quarter issuance, with nonfinancial corporates bringing $14.9 billion to the global market and financial corporates issuing $13.6 billion in green bonds.
Sovereign green bond issuance totaled $11.9 billion in the quarter, while issuance by government-backed entities reached $11.0 billion.
Issuance from U.S.-based issuers declined to $8.1 billion in the second quarter from $11.9 billion in the previous quarter, while issuance from Chinese issuers climbed to $6.8 billion from $3.1 billion.
European issuers led global issuance in the second quarter with a 54% market share, up from 47% in the first quarter, driven by the Netherlands' $6.7 billion sovereign green bond.
Meanwhile, issuance in the more nascent social and sustainability bond market hit a record $16.7 billion in the second quarter, lifting first-half issuance to $30 billion from $14.8 billion in the prior-year period.