Sustainability bond market stumbles as investors get picky
Last year, $60bn of sustainability linked bonds (SLBs) were issued worldwide, a 37% decline on 2021. Issuance has fallen amid ‘greenwashing’ concerns. Interest rate increases, if a company does not meet its targets, are low. Unlike green bonds used to finance specific projects, SLBs have not benefited from greenium (a lower borrowing cost).