Thematic bonds – which include green, social, sustainability, and sustainability-linked bonds – are debt instruments which use the proceeds raised for ESG-related activities and investments. While thematic bonds currently make up 5% of the global debt market, the use of sustainable debt is likely to rise as both companies and governments seek financing for ESG investments. This is particularly true among sovereign issuers, as countries aim to accelerate the energy transition, preserve nature, and combat climate change.

Dentons’ report – The Name is Bonds. Thematic Bonds. – analyzes recent trends and data surrounding the use of sustainable debt around the world. It provides case studies and examples of how sovereign governments are using such instruments to increase access to financing, while also helping to achieve their ESG goals.

The publication was prepared by Dentons’ Sovereign Advisory group, which advises governments – particularly in emerging markets – on matters related to public debt, debt restructuring, energy, infrastructure and mining projects, taxation, international trade, and foreign investment.