Transparency, regulatory certainty and standards
harmonisation will help to clear the roadblocks to green bond
growth globally, according to panellists at the International
Capital Market Association's (ICMA) 2018 Green and Social Bond
Principles conference in Hong Kong.
The market will also benefit from more instruments and a
wider variety of issuers coming to market. Globally, cumulative
issuances of green bonds have reached $400 billion but the
market still has potential to grow. The increase in market size
and liquidity can help with trading of green bonds.
According to Stephanie Sfakianos, head of sustainable
capital markets, BNP Paribas, public sector issuances are still
dominant. "Sovereign issuances can help with benchmarking and
liquidity," she said. "But corporates are still a bit daunted
as they are risk adverse and the reluctance comes from
Eric Brard, head of fixed income, Amundi, said there needs
to be more diversity in instruments, not...