Green Bonds Blooming as Developing Countries Enter Market

(Bloomberg) — The market for green bonds sold to finance
environmental investments is swelling as developing countries
such as China and India explore their use.

Yes Bank Ltd. sold India’s first green bond last month to
fund low-carbon power projects, Moody’s Investors Service Inc.
said Wednesday in a report. China’s plan to open its debt
capital markets and cut pollution may transform the market if
backed by clear regulation and standards, it said.

The global green bond market may reach $100 billion this
year, triple the $37 billion of 2014, the report said, citing
estimates from the Climate Bonds Initiative. Standard & Poor’s
in March said China’s entry would be a “game-changer.”

Companies are so far holding off selling green bonds
because they aren’t cheaper than regular bonds and following
criticism of how proceeds are spent, the report found. Local
governments will probably increase issuance, it said.

To contact the reporter on this story:
Louise Downing in London at
ldowning4@bloomberg.net

To contact the editors responsible for this story:
Reed Landberg at
landberg@bloomberg.net
Tony Barrett, Randall Hackley

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