- JPMorgan Chase & Co. has reentered the green bond market after a hiatus of over two years, aligning with the surging global sales of such environmentally responsible debt. The largest U.S. bank successfully issued $7.25 billion in bonds across three segments, as disclosed by an anonymous source familiar with the matter. Notably, a $2 billion green bond with a four-year maturity, callable after three years, forms the shortest segment of this offering.
- The funds raised through the green tranche will be earmarked for supporting environmentally responsible initiatives, encompassing a wide spectrum of projects outlined in the bank's sustainable bond framework for 2022. These projects may encompass green buildings, renewable and clean energy, and sustainable transportation, including electric vehicles. The bank has recently reported another quarter of record net interest income and has adjusted its yearly projections accordingly.
Why it matters
On a global scale, the sales of green bonds are poised for a remarkable year, with total sales amounting to $422.97 billion in the initial three quarters of the year, marking an unprecedented pace. However, within the United States, corporations, including Wall Street banks, have reduced their issuance of bonds linked to environmental, social, and governance (ESG) concerns this year