Development of the ESG bond market

The topic of sustainable development remains very relevant. Experts believe that measures taken by the state, especially to support ESG bonds, can significantly contribute to the development of this sector. An article on green financing was published in Energy and Industry of Russia. Olga Kalyuzhnaya, President of the Russian Timber Association, provided a commentary on this article.

In the first half of 2024, four bonds were issued by two issuers on the Russian sustainable development bond market. The total amount of funds raised amounted to RUB 22.8 billion at the par value of the issues, which is 18.6% less than in the same period last year. In the first half of 2023, five Russian issuers issued five bonds for a total of RUB 28 billion at par. It is worth noting that the beginning of the year is not always indicative for bond issues: in 2023, the second half of the year accounted for RUB 114.8 billion. issues in this sector.

This year, bonds were issued by two organizations: SOPF Infrastructure Bonds (a subsidiary of JSC Dom.RF) and PAO EuroTrans (a network of petrol stations under the Trassa brand).

Currently, market participants and experts are talking about the absence of a "green" premium in Russia. This means that bonds that can be called "green" or "social" do not allow issuers to raise funds cheaper than regular "uncolored" issues intended for general corporate purposes.

Olga Kalyuzhnaya, President of the Russian Timber Association: "Today, "green" bonds are indeed a niche instrument on the Russian stock market. However, we should not forget that we are at the beginning of the journey. However, by the end of the year, the volume of the ESG financing market grew by 27% - to 489 billion rubles. In 2024, it may increase to 550 billion rubles. If we talk about the readiness of large companies to attract ESG financing through such placements, they are limited by the lack of economic incentives. The Greenium effect (reduction of the rate on "green" bonds) for the Russian market is still insignificant, the lack of available information is also a restraining factor: data on ESG portfolios of financial companies are often closed. At the same time, there are positive changes at the municipal level: for example, Krasnoyarsk plans to implement a pilot project to issue over-the-counter "green" bonds" .