| LONDON, April 20
LONDON, April 20 Moody's Investors Service has
reduced its estimate of global green bond issues this year to
nearly $120 billion from a forecast in January of $200 billion
as the number of transactions and Chinese and development bank
In the first quarter issuance of such bonds, used to raise
funds for projects seen as helping tackle environmental
problems, amounted to $29.5 billion, the market's second largest
quarterly volume to date and 75 percent higher than the first
quarter last year.
However, Chinese issuance dropped by over two thirds, the
number of total transactions fell and issuance by development
banks trailed off, Moody's said in a report published on
"If the current trend continues, green bond issuance will
total nearly $120 billion for the year and eclipse the record of
$93.4 billion in 2016," said Henry Shilling, Moody's senior vice
president and author of the report.
"This rate of growth, however, is lower than the increase of
120 percent from 2015 to 2016 that would push volume to $206
billion," he added.
In January the ratings service forecast global issuance
would cross the $200 billion mark this year.
However, HSBC also predicted in January that the growth in
green bond issuance could slow this year to $90-120 billion,
while Swedish banking group SEB said last month that issuance
could amount to $125-150 billion.
(Reporting by Nina Chestney; Editing by Greg Mahlich)