Tracking the pulse of sustainable finance: GSSS bond trends at Euroclear

As a cross-border Financial Market Infrastructure (FMI), Euroclear enables and facilitates the connection of issuers and investors around the world through activities such as cross-border payments, settlements and collateral management. 

Our mission is to support and enable a sustainable financial marketplace, while limiting our impact on the environment, providing an equitable and inclusive workplace and conducting business in an ethical and responsible way.

Did you know that in 2024, over EUR 369 billion in Green, Social, Sustainability and Sustainability-linked (GSSS) bonds were issued in Euroclear Bank?

By the end of the same year, over EUR 1.5 trillion in GSSS bonds were held under Euroclear Bank’s custody.

The value of GSSS bonds issued via Euroclear Bank increased by 35%, rising from EUR 273 billion in 2023 to EUR 369 billion in 2024. This notable growth was primarily driven by a surge in sustainability and green bond issuance.

An increase in value of GSSS bonds under custody

The value of GSSS bonds under custody increased by 23%, amounting to over 1.5 trillion by the end of December 2024.

Growth across GSSS bond classes

Sustainability bonds under custody have grown the most in 2024 with 43% increase in comparison with 2023.

Green bonds remain the dominant class of GSSS bonds

Green bonds constitute the majority of GSSS bond under custody, with sustainablity bonds following in quantity. 

GSSS bonds by issuance jurisdiction: Over 50% in international structure

Over half of the GSSS bonds under Euroclear Bank’s custody were issued through the international structure, followed by issuances under U.S. and French jurisdictions, each accounting for approximately 10% of the assets.

Top 5 issuer types: GSSS bonds under custody are increasing across various issuer categories

There has been a rise in GSSS bonds under custody across the various issuer categories. GSSS bonds issued by supranational seems to be the preferred option with significant growth of 30% while the ones issued by sovereign have grown the most with a 31% increase in 2024. Notably, custody of SLB issued by sovereign and credit institutions are in decline.

5 currencies: EUR, USD and GBP taking the lead

GSSS bonds per currency

The euro, US dollar and British pound are the three leading currencies for GSSS bonds under Euroclear Bank’s custody. GSSS bonds under custody denominated in currencies such as the Indian rupee, Peruvian sol and Chinese yuan more than doubled in 2024 – increasing by 218%, 113% and 106% respectively compared to 2023. This growth propelled these currencies to enter the top 15 in 2024.

Top 15 currencies in 2024: EUR, USD, GBP, SEK, AUD, CAD, PEN, NOK, MXN, NZD, CNY, DKK, INR, CLP and JPY.

GSSS bonds under custody by issuer region: over 70% from European issuers