Sustainable Finance

MARKET HIGHLIGHTS | JULY 2021

The second quarter of 2021 saw continued growth in green, social, sustainability, and sustainability linked (GSSS) issuances, as projected earlier in the year.

In particular, sustainability linked loans have gained greater prominence alongside more complex derivatives and leveraged finance products.

 

Concurrently, sustainable finance regulation is progressing, too: the EU Taxonomy regulation was finally approved on 4^thJune. And, most recently, the European Green Bond Standard (EU GBS) legislative proposal was published by the European Commission on the 6th July. This new update will provide greater clarity to issuers and investors on the development of the sustainable finance market over the coming years. Globally, we can look forward to more alignment by the end of the year when a common set of guidelines is expected to be announced by the EU and China as they are to collaborate on Green Investment Standards.

ISS INSIGHTS

Read the recent ISS Insights post on the new EU GBS legislative proposal and ISS ESG’s roadmap in preparation for this legislation, which covers:

In line with the rising level of issuances globally, ISS ESG has delivered more than 40 external reviews over the past quarter. Notable SPO issuances include Repsol’s framework, combining the use of proceeds and sustainability linked aspects, compliant with the ICMA Climate Transition Finance Handbook, as well as Tecnicas Reunidas’ transition framework. Another residential mortgage backed security (RMBS) originated by Kensington is now on the market, as well as the inaugural Amazon sustainability bond.

By way of background, ISS Corporate Solutions (ICS) works in collaboration with ISS ESG, the responsible investment arm of Institutional Shareholder Services, as the distributor of SPOs. While the SPOs are sold and distributed by ICS, the analytical work to prepare and issue SPOs is performed by ISS ESG.

OUR PEOPLE

ISS Corporate Solutions (ICS) is pleased to announce the appointment of Damaso Zagaglia as a Sustainable Finance Senior Associate, covering the Nordics market.

 

Prior to joining ICS, Damaso spent three years at ISS ESG as an ESG Consultant with relevant experience in SPO operations.

 

Damaso’s extensive expertise and understanding of issuers and underwriters evolving perspectives will enhance the value of ICS’ SPO services for our Nordic clients.

As external reviewers, ISS ESG has delivered more than 300 SPOs according to rigorous & widely respected standards. The table is a high-level summary of successful SPO deliveries for clients in Q2 2021.