ING Philippines sees significant opportunities for growth in sustainable finance deals, bolstered by a strong global appetite for the green bond market.
According to ING’s latest Sustainable Finance Pulse, global green bond issuance reached $169 billion in the third quarter of 2024, surpassing the quarterly average of $160 billion and significantly outpacing the previous years’ average of $130 billion for the same quarter.
Despite this growth, overall sustainable finance issuance for the quarter fell slightly short of expectations at $385 billion, below the $400 billion quarterly average.
ING anticipates a continuation of the slower pace into the fourth quarter, with market activity concentrated in the first half of 2024.
The report attributes the slowdown to a decline in sustainability-linked debt products, although ING anticipates a rebound in 2025 as issuers increasingly turn to Environmental, Social and Governance offerings to meet market demand and achieve cost efficiencies.
Jun Palanca, ING Philippines’ country manager, highlighted the bank’s active role in sustainable finance discussions. “We continue to have meaningful conversations with both first-time clients interested in sustainable finance solutions and established clients returning to explore new opportunities in this space,” Palanca said. “The market has seen encouraging momentum, particularly when well-known corporates completed notable sustainable finance transactions this year. Looking ahead to 2025, our ongoing discussions with clients indicate continued interest in sustainable finance deals, pointing to potential growth opportunities in this market,” he added.
