Asia in 2019 continues breaking out of the nascency in sustainable investing, beating record after record with the latest near $1 billion green bond fundraising for a clean energy producer.
Greenko, backed by Singapore and Abu Dhabi sovereign wealth funds, GIC (61%) and ADIA (15%), respectively, raised $950 million yesterday following commitments by the two supporters to inject an addition $329 million. This marks a record-high amount raised by any green bond issuance in Asia.
According to reports, Greenko owns operating assets of 4.2 gigawatts with another 7 gigawatts under construction.
Green bonds gain momentum in Asia
The west is becoming increasingly acquainted with investment practices considering environmental, social and governance (ESG) factors and in instruments such as classified stocks or green bonds. The London Stock Exchange, for example, classifies oil and gas stocks as part of the non-renewable energy sector, distinctively highlighting nomenclature.
But Asia is also gaining momentum. Unlikely to pursue a similar path as developed economies in adopting old generation methods of industrialization, emerging markets like India will seek a green economy with an estimated need for $80 billion funding from now till 2022 and another $250 billion from 2023 to 2030.
In addition to single issuances, the region also broke its first-half record with $21.9 billion raised, a 30 percent year-on-year increase. China was the country leader in green bond issuances at $8.3 billion.
