Leading sustainable finance publication Environmental Finance has awarded BNP Paribas across three categories at the 2024 Sustainable Debt Awards, including:
- Lead manager of the Year, sustainability bonds – sovereign
- Lead manager of the Year, sustainability bonds – supranational, sub-sovereign and agency (SSA)
- Loan sustainability coordinator of the Year
Green bonds continue to dominate
In 2023, green bonds continued to make up the largest share of sustainable bond issuance globally, and this is set to continue. Recent regulation across the EU has spurred demand from investors for labelled issuance, explains Agnes Gourc, Head of Sustainable Capital Markets, BNP Paribas: “In EMEA in 2023, around 20% of transactions were labelled ESG. In the first quarter of 2024, however, that rose to c.35% of corporate transactions. There is strong momentum in the European segment.”
❝ This is a sign of strong momentum in the European segment. ❞
In 2023, the Bank also participated in seven of the 10 largest European sustainable loan transactions in the year, helping it to win Loan Sustainability Coordinator of the Year.
Among them, BNP Paribas recently supported DLG Group on its €1.1 billion sustainability-linked loan, with targets to reduce Scope 3 emissions from the value chain.
Increased activity in the Americas
In the United States, the Inflation Reduction Act spurred an increase in activity in sustainable capital markets.
In 2023, BNP Paribas grew its market share in the Americas, ranking #5 for ESG bonds and loans in the region, up eight spots from 2022, according to Dealogic.
At the same time as this increase in activity, investors sought greater clarity from issuers. Anne Van Riel, Head of Sustainable Finance Capital Markets Americas, BNP Paribas explains: “Investors are telling us less is more. They want less complicated frameworks and a focus on the key categories that are relevant for a specific business strategy, so we are seeing a decluttering of labels and frameworks.”
❝ We are seeing a decluttering of labels and frameworks. ❞
Strong start for sovereign issuers
As jurisdictions look to meet the Paris Agreement goals, BNP Paribas is committed to supporting sovereign issuers. In 2023, the sovereign issuance of green, social, sustainable, and sustainability-linked bonds totalled USD136 billion, up 45% compared with 2022, according to S&P Global. At the start of 2024 this trend has continued, explains Jamie Stirling, Global Head of Sovereign, Supranational and Agencies (SSA), BNP Paribas: “Sovereign issuers in Europe saw strong investor appetite going into 2024, with a very strong start to the year.”
❝ Sovereign issuers in Europe enjoyed strong investor appetite. ❞
BNP Paribas recently supported The Republic of Iceland’s record-breaking inaugural green bond. The issuance achieved the country’s largest ever investor interest for a EUR transaction with a final order book more than EUR7 billion and over 270 accounts participating.
At the start of the year the Bank also supported the African Development Bank on the launch of a US$750 million global benchmark perpetual sustainable hybrid bond, the first ever hybrid capital transaction from a multilateral development bank (MDB).