Labeled Bonds: Market Overview H1 2025
Preview
In our regular series dedicated to green, social, sustainability and sustainability-linked labeled bonds, we break down the market by multiple bond and issuer characteristics to identify key trends in this rapidly growing and increasingly diverse market.
Highlights:
- The labeled-bond market saw a net addition of USD 303 billion in the first half of 2025, bringing the total outstanding amount to USD 5.2 trillion. Despite the 4% year-over-year decrease in gross issuance, labeled bonds continued to increase their presence in global bond benchmarks in H1 2025.
- Green bonds continued to dominate the labeled-bond market, accounting for 57% of new issuance and 56% of all outstanding labeled bonds. Green bonds were followed by sustainability bonds (24% of issued and 19% of outstanding), social bonds (15% of issued and 19% of outstanding) and sustainability-linked bonds (4% of issued and 7% of outstanding).
- Corporate issuers led issuance in the first half of the year with USD 296 billion worth of labeled bonds (56% of the total), while supranational, sovereign and agency (SSA) entities issued USD 235 billion (44%).
- ESG leaders (those with an MSCI ESG Rating of AAA or AA) issued 57% of all new labeled bonds, while ESG laggards (MSCI ESG Rating of B or CCC) issued only 3%.
“Wider bond market” refers to bonds that were constituents of MSCI Government, Provincial and Municipal and Corporate Bond Indexes during the study period (n=14,018). “Labeled bonds (sample)” refers to labeled bonds included in these MSCI bond indexes during the study period (n=1,234). Performance attribution was conducted using the MSCI Multi-Asset Class Factor Model in MSCI’s BarraOne® risk and portfolio-management analytics platform. Past performance does not indicate future returns. Data as of June 30, 2025. Source: MSCI ESG Research
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