Finance
HSBC Sees Social Debt Sales Nearly Doubling in Response to Virus
- Social, sustainability bond supply jumped 69% in first quarter
- Borrowers use funds to boost health services amid Covid-19
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Social bond issuance is poised to almost double last year’s total as more borrowers raise debt to respond to the humanitarian crisis presented by Covid-19, according to one of the top underwriters of the securities.
HSBC Holdings Plc is boosting its social and sustainability bond forecast by $25 billion, to as much as $125 billion this year, according to Dominic Kini, the bank’s European credit strategist. Issuers like Pfizer Inc. and the African Development Bank helped sell more than $31 billion of the debt through April 3, which HSBC says is just the tip of the iceberg as more institutions try to combat the devastation caused by the coronavirus outbreak. About $66 billion was sold last year.