OMFIF's Sovereign Debt Institute’s Post

"There's just no demand for 'green' products" - said those now lining up to get involved in sustainability-linked finance. The World Bank (IBRD, Aaa/AAA) successfully raised $6.5 billion through a dual-tranche Sustainable Development Bond issuance, marking its largest order book to date. The offering included a $3 billion 2-year bond maturing in August 2026 and a $3.5 billion 10-year bond maturing in August 2034. The bonds attracted over 300 orders totaling more than $22.7 billion, reflecting strong global demand for safe, liquid investments that support sustainable development. https://lnkd.in/daCDQgBG.

ESG Derivatives Today: Regulatory Inconsistencies, Data Issues But A Clear Opportunity ESG derivatives are increasingly vital in today’s sustainable finance landscape due to their inherent flexibility and adaptability. However, inconsistent regulation across jurisdictions, data challenges and a lack of standardisation still creates challenges for wider use. In a DerivSource Q&A, Dr. Ligia Catherine Arias-Barrera, author and associate professor, Universidad Externado de Colombia, discusses these obstacles and the opportunities these instruments offer as part of a lengthier exploration of the evolution of ESG derivatives in her book – “The Law of ESG Derivatives: Risk, Uncertainty, and Sustainable Finance” (Routledge 2024). Read on for insight into lesser discussed risks, such as home bias, and the potential for ESG derivatives to bridge the gap between managing risks and contributing to sustainability and social goals. #ESG #derivatives #booklaunch https://hubs.li/Q02CLqmX0

Interesting perspectives from Sjoerd Humble, Lowie Dangermond and Boudewijn Dierick on the #ESG #securitization market. Consistently hopes for a 'greenium' are not what drives them to issue ESG deals. But issuing ESG deals already draws attention in a busy market, reducing execution risk, and there are reasons to think the 'greenium' could grow over the next few years. (DM me to read)

Deutsche Bank launches a $500 million social bond to boost sustainable finance #Deutsche Bank has taken a significant step forward in its commitment to sustainable finance with the launch of its first €500 million social bond. This landmark issuance will support the bank’s sustainable asset pool, targeting vital areas such as affordable housing and essential services for elderly and vulnerable populations. The initiative aligns with Deutsche Bank’s Sustainable Instruments Framework, which guides the development of green and social financial instruments. The funds raised from this social bond will be directed towards loans and investments that promote a clean, energy-efficient global economy and societal progress. Specifically, the financing will aid in providing affordable housing for disadvantaged communities and improving access to specialized senior housing care. This move marks a notable expansion of Deutsche Bank’s ESG issuance program, which began in 2020 with its first green bond. By introducing both green and social financing instruments, Deutsche Bank aims to contribute significantly to the sustainable finance market, helping clients transform their businesses in a climate-friendly and socially sustainable manner. Deutsche Bank’s foray into social bonds underscores its dedication to fostering environmental and social governance (ESG) principles, reflecting a broader trend in the financial sector towards supporting sustainable development goals. This issuance not only broadens the bank’s ESG portfolio but also sets a precedent for future sustainable finance initiatives. The article on FinTech Global in the first comment. Want to stay up to date with the market? Here my newsletter: - Linkedin: https://lnkd.in/d4h8zqKA  - Substack: https://lnkd.in/dzfGJzmW

As we move into the next phase of ESG investing, bondholders are reviewing the value of their portfolios. Are their investments making an impact and if so, how much? It is a challenging question to address because the answer requires access to documentation, expertise to extract the data, and resources to scale. Join Bloomberg experts to discuss the sustainable fixed income market, managing the complexities of impact and allocation data, and learn more about the Bloomberg Terminal and Enterprise Data workflows on Tue May 21 @10am EST, 3pm BST. Registration Link below. #SFI, #ESG, #Impact,#Sustainability https://lnkd.in/eKmhAign

🚀 In our latest peer group study, we confirm that Robeco's Global Multi-Factor Credits (GMFC) strategy remains a consistent style diversifier compared to traditional global credit strategies. With low correlation, low tracking error, and low volatility, it stands out as a core credit allocation. 📊 Since its inception in 2015, GMFC has maintained the lowest average outperformance correlation among peers, offering unique stability in turbulent markets. Its systematic investment process integrates ESG factors, ensuring sustainable investment principles. 🌱 As a cost-effective alternative to passive strategies, GMFC is an appealing choice for asset owners seeking steady performance and diversification. Download the full study to explore the results in detail! https://ro-be.co/3jht78yu #FactorInvesting #Sustainability #GlobalCredits

🚀 In our latest peer group study, we confirm that Robeco's Global Multi-Factor Credits (GMFC) strategy remains a consistent style diversifier compared to traditional global credit strategies. With low correlation, low tracking error, and low volatility, it stands out as a core credit allocation. 📊 Since its inception in 2015, GMFC has maintained the lowest average outperformance correlation among peers, offering unique stability in turbulent markets. Its systematic investment process integrates ESG factors, ensuring sustainable investment principles. 🌱 As a cost-effective alternative to passive strategies, GMFC is an appealing choice for asset owners seeking steady performance and diversification. Download the full study to explore the results in detail! https://ro-be.co/3jht78yu #FactorInvesting #Sustainability #GlobalCredits

Global ESG sukuk issuance set to rise through 2025  Global ESG sukuk issuance is expected to continue rising over 4Q24-2025, driven by investor demand, funding and diversification goals, and government sustainability initiatives in some Muslim-majority countries, Fitch Ratings says. The expected US Federal Reserve rate cuts to 4.5% at end-2024 and 3.5% at end-2025 could further improve financing conditions and support issuances. https://lnkd.in/e4p3VGET

In an op-ed for ESG Mena titled, The Role of Responsible Investing in Forex Trading: A Path Towards Sustainable Development, Ruggero Catalano Rossi Danielli, Co-Founder of OverviewFX, writes: "Responsible investing in forex trading offers a compelling opportunity for traders to align their financial goals with their values and contribute to sustainable development." "By investing in currencies of countries with strong sustainability practices, monitoring economic policies that promote sustainability, considering corporate responsibility factors, and incorporating ethical considerations into trading decisions, forex traders can play a significant role in advancing environmental, social, and governance objectives on a global scale." "As responsible investing continues to gain momentum, it is essential for forex traders to recognize their potential to drive positive change and integrate sustainability principles into their trading strategies. To read the full piece, follow the link and share your thoughts by commenting below. #responsibleinvesting #finance #sustainabledevelopment