(Bloomberg) -- The global sustainable bond market clocked its slowest month of the year in November as borrowers dialed back issuance, anticipating volatility because of the US elections.
Sales of new green, social, sustainability and sustainability-linked bonds around the world totaled about $60.2 billion last month, compared with $81.8 billion issued in the same period last year, according to data compiled by Bloomberg. That makes it the slowest month this year and the most tepid November since 2019.
The amount is also the lowest since December 2023, when companies and governments issued $29 billion of such debt.
Sovereigns, the top issuers of sustainable bonds in 2024, addressed their borrowing needs ahead of the US elections and are — for the most part — done for the year, according to Bloomberg Intelligence analyst Christopher Ratti. Heightened macro and geopolitical risks outside the US may have also impacted sales last month, he added. Seasonally, November is also a slow month for bond sales.
“The short of it is just timing,” said Ratti in a phone interview on Tuesday. “December is also going to be light. A lot of people have pulled some of this forward — especially in the US, a lot was done before the election.”
Adani Group’s renewable units, meanwhile, scrapped a $600 million green bond offering after US prosecutors charged the group’s founder Gautam Adani with participating in an alleged bribe plot. The group said the allegations are baseless, adding that it would seek all possible legal recourse to defend itself.
ISSUANCE
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--With assistance from Jiayu Liu.
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