Training | Green and Sustainable Capital Market Evolution
About this training
Building on six years of actionable insights and solutions to help businesses on their path to greater sustainability, The Economist’s Sustainability Week comes to Asia! The sustainable finance market has seen remarkable growth since European Investment Bank (EIB) issued the first Climate Awareness Bond in 2007. In the sustainable bonds space, the market has seen record-breaking growth, almost doubling year on year between 2019-2021, and crossing the US$1 trillion milestone in terms of issuances in 2021. Sustainability-linked loan is now contributing over a quarter of the total sustainable finance market. Sustainable financing is no longer a fringe activity in the international capital markets, with increasing proportion of issuers refinancing in ESG-labelled format, and many sovereigns leading the way with the inaugural sustainable bond issuances.
In this session, we will explore the different types of ESG-labelled bonds and loans, ranging from use of proceeds instruments, where proceeds are used to finance or refinance specific green, social or transition activities, to sustainability-linked instruments, in which the financial characteristics of the instrument are tied to achievement of specific sustainable performance objectives within a defined timeframe. We will walk through the process of creating a Sustainable Finance Framework, explore reporting and monitoring commitments under such a framework, and the process of obtaining an external review. Specific case studies will also be covered, including first-of-a-kind transactions and Frameworks, including the first sovereign sustainability-linked finance framework as well as first ever transition and sustainability-linked bond in the aviation sector, to provide a holistic understanding of the latest developments in the sustainable finance market.