Global issuances of sustainability-linked bonds in the first half of the year reached US$568,000 million, surpassing issuances during the same period last year. The bulk of the issuances consisted of green bonds, totaling US$351,000 million—the highest figure ever recorded for issuances in a single half-year—which puts 2023 on track to become a record year for this type of instrument, according to an analysis by the law firm Linklaters. Most of these issuances came from banks, which use the funds raised to finance green projects.

By region, Asia-Pacific saw a significant increase in issuance, but Europe remains the leading market for green bonds, with US$190,000 million in issuances in the first half of the year. The market’s growth is taking place against the backdrop of an ever-evolving regulatory landscape in Europe, where the new EU Green Bond Standard is expected to be adopted by the end of this year. This agreement will make it easier for investors to assess, compare, and trust that their investments are sustainable, thereby reducing the risks of greenwashing.

The only issues that showed a decline compared to the first half of last year were sustainability-linked bonds (SLBs), whose financial characteristics vary depending on whether the issuer meets predefined environmental, social, or governance (ESG) targets—measured using a predefined Key Performance Indicator (KPI) over a specified time period—and which are aligned with the five core components of the Sustainability-Linked Bond Principles.

Chile has issued several SLB bonds. In late June, the Ministry of Finance issued a bond worth US$2.25 billion that included a performance indicator linked to gender equality and women’s empowerment, making Chile the first country in the world to do so. On July 19, meanwhile, the Ministry of Finance issued its first SLB bond denominated in pesos on the international market, for the equivalent of US$2.2 billion.