ESG
The ESG Phenomenon - Citigroup

Developments and commentary in and around the ESG investment space.
Citigroup
The US banking group said it has clocked up $40 billion in
fundraising for Asia-Pacific clients to support their sustainable
financing needs – a rise of more than 500 per cent from the same
period in 2020.
Highlight transactions include Alibaba Group’s $5 billion
four-part offering in February, which included a 20-year
sustainability tranche – its debut sustainable capital markets
transaction, Citigroup said in a
statement. From the hardware sector, SK hynix issued a $2.5
billion bond in January with a 10-year green tranche. Citigroup
also led a $3 billion sukuk – Shariah-compliant debt – for the
Republic of Indonesia in June, which included a 30-year “green
tranche” – which it said was the longest-ever green offering in
Islamic format.
The bank said issuers of debt can often raise cheaper financing
by adopting green bonds, obtaining favourable pricing – a
“greenium.” Issuers are taking advantage of higher
oversubscription levels for these transactions, especially in
busy or difficult markets.
A decade ago, the environmental, social and governance-themed (ESG) investing market was led by niche investors with assets under management not exceeding $5 billion, according to market estimates. Citigroup said that globally, assets under management in ESG formats exceed $30 to $40 trillion.