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Goldman Sachs (GS) Enters Green Bonds Market With $800M Deal
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Per a Bloomberg’s article, The Goldman Sachs Group (GS - Free Report) has issued its first-ever sustainable bonds worth $800 million. Also, the bank was forced to increase its offering by $50 million due to strong demand from investors. Single-tranche bonds, set to mature in five years, are expected to yield 0.4% more than Treasuries.
The proceeds from this offering are likely to be used to finance loans and investments made in projects and assets, such as clean energy, sustainable transport and financial inclusion that match the criteria for Goldman’s green and social framework.
Notably, per Goldman’s sustainability issuance framework, it seeks to finance and invest about $750 billion across nine key themes tied to climate transition and inclusive growth over the next 10 years. Bloomberg also reported that Goldman has organized a group focused on investment opportunities in clean energy, waste and other sustainability industries since October 2020.
Several major banks have made efforts in the space. PNC Financial (PNC - Free Report) issued its first green bond in November 2019 to fund eligible projects that promote a transition to a low-carbon economy. Also, JPMorgan (JPM - Free Report) entered this fast-growing market in September 2020 by selling $1 billion such bonds, with four years maturity.
Among other Wall Street banks, Citigroup (C - Free Report) has made the largest deal in this space by issuing $2.5 billion of sustainable bonds in October last year.
Our Take
Marilyn Ceci, global head of ESG debt capital markets at JPMorgan, told Bloomberg that it expects the sustainable finance market to expand 49% by the end of 2021 compared with 30% projected in last October. Thus, Goldman’s decision to place foot in this fast pace-picking market seems encouraging.
Moreover, the key source of Goldman’s earnings stability lies in its diversified business. Traditional banking, along with a diverse product portfolio, is likely to help sustain growth.
The company has gained 43.4% in the past six months compared with 47.9% growth recorded by the industry.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things's (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’ exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
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Goldman Sachs (GS) Enters Green Bonds Market With $800M Deal
Per a Bloomberg’s article, The Goldman Sachs Group (GS - Free Report) has issued its first-ever sustainable bonds worth $800 million. Also, the bank was forced to increase its offering by $50 million due to strong demand from investors. Single-tranche bonds, set to mature in five years, are expected to yield 0.4% more than Treasuries.
The proceeds from this offering are likely to be used to finance loans and investments made in projects and assets, such as clean energy, sustainable transport and financial inclusion that match the criteria for Goldman’s green and social framework.
Notably, per Goldman’s sustainability issuance framework, it seeks to finance and invest about $750 billion across nine key themes tied to climate transition and inclusive growth over the next 10 years. Bloomberg also reported that Goldman has organized a group focused on investment opportunities in clean energy, waste and other sustainability industries since October 2020.
Several major banks have made efforts in the space. PNC Financial (PNC - Free Report) issued its first green bond in November 2019 to fund eligible projects that promote a transition to a low-carbon economy. Also, JPMorgan (JPM - Free Report) entered this fast-growing market in September 2020 by selling $1 billion such bonds, with four years maturity.
Among other Wall Street banks, Citigroup (C - Free Report) has made the largest deal in this space by issuing $2.5 billion of sustainable bonds in October last year.
Our Take
Marilyn Ceci, global head of ESG debt capital markets at JPMorgan, told Bloomberg that it expects the sustainable finance market to expand 49% by the end of 2021 compared with 30% projected in last October. Thus, Goldman’s decision to place foot in this fast pace-picking market seems encouraging.
Moreover, the key source of Goldman’s earnings stability lies in its diversified business. Traditional banking, along with a diverse product portfolio, is likely to help sustain growth.
The company has gained 43.4% in the past six months compared with 47.9% growth recorded by the industry.
Currently, Goldman sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things's (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’ exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>