Europe Trounces U.S., Asia in Race to Turn Capital Markets Green
- One out of $3 borrowed by corporates is linked to ESG goals
- High-yield issuers embrace SLLs even for leveraged buyouts
Photographer: Krisztian Bocsi/Bloomberg
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Ethical ambitions are becoming the centerpiece of European credit markets, making the region the undisputed world leader in sustainable financing.
One dollar out of every $5 raised this year by European issuers has been linked to borrowers’ performance in Environmental, social and governance (ESG) initiatives. That ratio increases to one out of $3 for corporate loans. Those shares in overall loans are several times higher than the proportions for the Americas and Asia-Pacific.