The issuance of offshore green bonds by Chinese firms fell to a record low in 2023 amid rising rates and the absence of property developers, according to a Fitch report.
Offshore green bond issuances by Chinese companies totaled around $10 billion in 2023, according to a report by Sustainable Fitch. This marks a 36 percent year-on-year decrease to a record low and half the amount issued in 2021. In 2022, the market recorded a 21 percent decrease.
The report cited rising US interest rates and the absence of issuances from Chinese property developers as major drivers for the decline.
Active Players
Nonetheless, green bonds are becoming increasingly popular with non-property mainland Chinese firms to meet the rising demand to finance transition projects. Onshore, green bond issuances grew 10 percent in 2023, compared to a 65 percent growth in 2022.
«Banks, local government financing vehicles and energy corporates are now the dominant issuers that remain active in the offshore green bond market,» said Jingwei Jia, associate director of Sustainable Fitch, in the report.
