JPMorgan returns to green bond market for first time since August 2021
JPMORGAN Chase & Co sold green bonds for the first time in over two years as global sales of the debt accelerate at a record pace.
The biggest US bank raised US$7.25 billion of bonds in three parts, according to a source with knowledge of the matter. The shortest portion of the offering, a four-year security, is a US$2 billion green bond that’s callable after three years, said the source, who asked not to be identified as the details are private.
Proceeds from the green tranche will be used to fund eligible green projects, added the source. Such projects could range from green buildings to renewable and clean energy, as well as sustainable transportation – such as electric vehicles, according to the bank’s sustainable bond framework 2022.
JPMorgan last tapped the green bond market in August 2021 when it raised US$1.25 billion, data compiled by Bloomberg shows. The bank recently posted another quarter of record net interest income and boosted its forecast for the year.
Global green bond sales are on track for the biggest year ever, with sales totalling US$422.97 billion in the first three quarters of this year – a record-setting pace – data compiled by Bloomberg show.
However, US corporations – including Wall Street banks – have dialled back their sales of bonds linked to environmental, social and governance (ESG) issues this year, as the price benefit for selling the debt diminishes and Republican politicians push back against investing strategies that factor in ESG.
A NEWSLETTER FOR YOU
ESG Insights
An exclusive weekly report on the latest environmental, social and governance issues.
This year, Goldman Sachs Group expects just US$40 billion of ESG corporate investment-grade issuance in the US dollar market – half the amount issued by US companies last year, and just 40 per cent of 2021 levels.
A spokesperson for JPMorgan did not reply to a request for comment. BLOOMBERG
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Macquarie sees biggest profit dip in 15 years on commodities downturn
HSBC appoints ex-Citi banker as new Singapore head of global banking
H2G Green chief to stand trial on Aug 5 amid MOM probe
Dasin Retail Trust’s trustee-manager chairman, directors deny allegations of misconduct
Microsoft adds security chiefs to product groups in wake of hacking woes
Singapore shares climb at Friday’s open; STI up 0.2%