Andrew Hollins, Director of Corporate Treasury Proposition at Refinitiv, brings you the October 2021 round-up of the latest Corporate Treasury Data Insights, including movements in the green bond market, the Bitcoin Strategy ETF and ESG for Corporate Treasurers in Asia Pacific.
- The green bond market in the UK and Europe has hit new heights in September and October, with corporations beginning to increase the number of bonds they issue.
- Meanwhile, sustainable finance is heading towards record levels for 2021, Refinitiv data is used to analyse the UK’s CO2 Intensity Ratio, and urgent action is required to ensure a smooth LIBOR transition.
- Plus a look at the first Bitcoin ETF to be listed on a U.S. stock exchange, and a webinar that looks at how corporate treasurers in Asia can deal with the challenges posed by ESG.
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Charts of the Month
In the space of just three weeks, the UK and the EU have pushed the green bond market to a new level, with each in turn setting records for this increasingly key instrument, attracting close to US$300bn of demand between the two, in September and October this year.
While governments, agencies and financials have made up a large portion of green bond issuance in recent years, corporations across industries are now starting to issue their own green bonds in increasing numbers.
Green bond issuance in the energy and power sector has seen an increase from US$17.727bn in 2018 to US$64.747bn in 2021, while the real estate sector accounts for some 10 percent of market share this year.
What is driving sustainable finance towards a record 2021?
Levels of sustainable finance have smashed records across products and asset classes in the first nine months of 2021. And although the market has cooled somewhat in Q3 with slowing sovereign-issuance, there are signs of corporates filling the gap.
Meanwhile, grass-roots interest in sustainable companies is driving a continued M&A surge in both number and value of deals.
ESG for Corporate Treasurers in Asia Pacific: What role should you play?
In partnership with the Association of Corporate Treasurers Singapore (ACTS), we bring together some subject matter experts to discuss the basics of ESG and challenges faced by corporate treasurers when collecting, managing and reporting ESG related data, and explore insights on how to look at the data from a number of different lenses. Access the webinar.
Measuring the UK’s CO2 intensity ratio as COP26 approaches
The 2021 United Nations Climate Change Conference (COP26) is scheduled to take place from 31 October to 12 November in Glasgow, Scotland.
We explore Refinitiv ESG data for the current constituents of the FTSE 350 index (as of 30 September), which comprises the largest UK publicly listed companies by market capitalisation and is home to many of the largest commodity companies globally. What does the data reveal?
The LIBOR transition: Time for urgent action
Without fixes implemented before the end of 2021, the LIBOR transition could leave trillions of dollars of legacy instruments in disarray.
Data-driven solutions have the potential to enable a smooth transition to alternative risk-free rates. Market participants should immediately take stock, review their transition plans, and ensure that they have secured the data and support they need.
Take a look at the many remaining challenges that surround the imminent LIBOR transition.
Bitcoin Strategy ETF makes presence felt in weekly inflows
Tuesday 19 October marked the official launch of the new ProShares Bitcoin Strategy ETF (BITO).
The long-awaited cryptocurrency ETF marks the first of its kind to list on a U.S. exchange. BITO was listed on the New York Stock Exchange (NYSE) following a 75-day review by the SEC.
Refinitiv Corporate Treasury Newsbeat
- Refinitiv launches regulated Tokyo Swap Rate (for swaps referencing TONA) to facilitate industry transition from LIBOR | Refinitiv, a London Stock Exchange Group business, announced the launch of Tokyo Swap Rate (for swaps referencing TONA) – a new version of Tokyo Swap Rate, the Japanese yen (JPY) interest rate swap (IRS) benchmark family.
- Refinitiv powers Borsa Istanbul’s Sustainability Index | Refinitiv announced that its environment, social and governance (ESG) data will be incorporated into Borsa Istanbul’s Sustainability Index. Borsa Istanbul will also adopt Refinitiv’s ESG scoring metrics to calculate and maintain its Sustainability Index.
- LSEG announces further investments in global FX business | Joining LSEG are Sally Francis-Cole as Head of FX Sales and Stephen Best as Head of FX Product, while Jill Sigelbaum is taking on a new role as Head of Strategic Development & Partnerships, bringing demonstrated experience in driving growth and product strategy to the FX market.