Europe's exchanges still largest for ESG bonds

Since 2015, more than $1.6bn of sustainable bonds have been issued globally; nearly a third of which are listed on Luxembourg’s stock exchange. Unsurprisingly, European venues host the largest volumes and numbers of bonds associated with environmental, social and governance (ESG) factors, with eight out of the largest 10 hubs for sustainable bonds based in the region. Singapore and Hong Kong occupy the remaining two spots. Volumes spiked for most venues between June 2020 and June 2021, according to data provider Refinitiv, with Paris and Dublin grabbing extra market share over that period. Luxembourg and London, on the other hand, lost ground.

While the vast majority of ESG debt is traded on stock exchanges, nearly a quarter of the total is sold in private or through other types of transactions that relate to unlisted securities. Of these, a large portion is represented by bonds trading on China’s over-the-counter (OTC) market. According to Refinitiv, proceeds raised through China’s OTC market over the past six years surpass those of listings on the London Stock Exchange.