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Runaway ESG Debt Issuance Poised for Fresh Boost From Junk Sales

  • Underwriters project another record year for sustainable bonds
  • Greenwashing risk seen running high as demand exceeds supply
Euronext NV Market Reaction as Amsterdam Sees Biggest EU Trade Gain
Photographer: Peter Boer/Bloomberg

Investors racing to buy debt tied to environmental, social and governance goals are expected to propel issuance to fresh highs next year, boosted by leveraged finance. 

Sales of green, social, sustainability and sustainability-linked bonds from corporations and governments worldwide surpassed $1 trillion for the first time this year. Underwriters of the bonds and loans, who’ve been on a hiring spree to keep up with demand, are braced for another surge.