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Philippines
Monday, January 13, 2025
26 C
Philippines
Monday, January 13, 2025

ING expects sustainable finance offerings to rebound next year

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ING Philippines expects a rebound in sustainable finance next year as issuers increasingly adopt environmental, social and governance (ESG) offerings to drive demand and lower issuance costs.

“We’ve seen encouraging momentum this year, particularly with notable transactions by well-known corporates. Discussions with clients point to continued interest in sustainable finance deals, setting the stage for potential growth in 2025,” said ING Philippines country manager Jun Palanca.

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The Dutch multinational financial company said in a report that total sustainable finance issuance in the third quarter amounted to $385 billion globally, falling short by 3.8 percent of the $400-billion quarterly average.

ING attributed the slowdown to reduced issuance of sustainability-linked debt products as detailed in the report. The bank expects the slower pace to persist into the fourth quarter, with market activity concentrated in early 2024.

One silver lining is that growth in global green bond issuance reached $169 billion in the third quarter of 2024, surpassing the quarterly average of 160 billion, according to ING’s latest Sustainable Finance Pulse.

The Sustainable Finance Pulse also explored key performance indicators (KPIs) in sustainability-linked loans, highlighting the most frequently used KPIs across sectors based on ING’s activities and broader market trends.

As the global economy transitions to a low-carbon model, ING said it remains committed to supporting sustainable finance while acknowledging the ongoing need to balance financing activities.

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