{"id":559032,"date":"2021-01-05T03:40:53","date_gmt":"2021-01-05T03:40:53","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2021\/01\/05\/what-the-markets-are-doing-on-5-january-2021\/"},"modified":"2021-01-05T03:40:53","modified_gmt":"2021-01-05T03:40:53","slug":"what-the-markets-are-doing-on-5-january-2021","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2021\/01\/05\/what-the-markets-are-doing-on-5-january-2021\/","title":{"rendered":"What the markets are doing on 5 January 2021"},"content":{"rendered":"

<\/a> A global green bond boom may be coming in 2021:<\/strong> Governments and companies could issue up to USD 500 bn in green bonds this year \u2014 nearly half the total raised by the climate-friendly securities since their inception \u2014 as policymakers prioritize a green-led recovery from the pandemic, Swedish bank SEB says, according to the Financial Times<\/a>. HSBC estimates a more modest USD 310-360 bn in total 2021 green bond issuance.<\/p>\n

The EU plans to launch EUR 225 bn worth of green bonds<\/strong>, as part of its covid-19 recovery plan. But analysts say that the US market, which lags an estimated USD 326 bn behind Europe, may see particular growth this year. The current shortage of green bonds may have created a so-called \u201cgreenium,\u201d with higher costs for investors and lower borrowing costs for issuers.<\/p>\n

This could be good news for Egypt, which closed the <\/strong>region\u2019s first ever issuance of sovereign green bonds<\/a><\/strong> in September<\/strong>, selling USD 750 mn of bonds to investors before listing them on the London Stock Exchange<\/a>. Investors gobbled up the five-year securities, submitting USD 3.7 bn in bids and accepting a payout 50 bps lower than the initial 5.75% yield. The green bonds were 5x oversubscribed, showing substantial investor appetite.<\/p>\n

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