The number of ‘green’ bonds traded on the Swiss stock exchange is rising. While there were around sixty at the end of 2021, there are now over a hundred. Just under half of these bonds come from Swiss issuers.
Green bonds are gaining in importance: Today, more than one hundred green bonds with a total nominal value of around 28 billion Swiss francs are listed and/or admitted to trading on the SIX Swiss Exchange. At the end of 2021, there were still around sixty. Just under half of these green bonds are from Swiss issuers and 91% are denominated in Swiss francs. The most important issuers are banks (36% of green bonds), real estate companies (16%), states, cantons, provinces, and cities (12%), transport companies (9%) and supranational organizations (6%).
Appetite for green bonds increases
«The appetite for green bonds has grown exponentially in recent years. Their proceeds are being used for green or climate-related purposes. The reason for this increase is that investors are increasingly considering the ESG factors of environment, social and corporate governance factors when putting together their portfolios», knows Christian Reuss, Head SIX Swiss Exchange. On a global level, green bonds worth more than 2.3 trillion US dollars have been issued to date, according to the Climate Bonds Initiative. Reuss adds: «Switzerland is no exception. The local green bond market has grown strongly over the last twelve months.»
SIX labels the bonds
SIX automatically labels bonds on its website that are included in the Green Bond Database of the Climate Bonds Initiative and comply with the Green Bond Principles of the Zurich-based International Capital Market Association (ICMA). This is the world's leading voluntary framework for green bonds. According to Reuss, this designation helps investors because they can quickly get an overview of green bonds on the Swiss market without having to check individual securities.
