GUARANTEED SALES SULLIVAN bonds sale decreased by 13% in the first half of 2025, as revealed by MainStreet Partners
In the dynamic world of finance, the first half of 2025 has seen a mixed picture for Green, Social, and Sustainability (GSS) bonds. While global issuance decreased by 13% to reach $495 billion, the UK bucked the trend, with a 10% year-on-year increase in green bond issuance, totaling $14.7 billion.
Financial institutions were the main drivers of this growth, accounting for 64% of the total UK green bond issuance. This surge in green financing is a testament to the resilience and credibility of Green Bonds as a sustainable finance instrument, according to Pietro Sette, research director at MainStreet Partners.
However, the global decline in GSS bond issuance is not solely attributed to economic factors. Tighter domestic liquidity conditions, shifting monetary policies, and improved fiscal performances in key markets have played significant roles. Moreover, the decline in local currency sukuk issuance, due to liquidity constraints in some countries and the redirection of financing efforts towards large-scale investment programs, has also contributed to this trend.
Despite the decline, Sette emphasizes that the GSS bond market's structural foundations remain intact, supported by evolving regulation and deepening investor focus on impact and transparency. The uptake of the EU Green Bond Standard reached €8.5 billion by mid-2025, reflecting this growing interest.
However, persistent gaps in transparency and alignment remain in the GSS bond market. For instance, real estate, which has 89% of its activities qualifying for the EU Taxonomy, only aligns 30% of that eligible revenue. Closing these gaps will be essential to strengthen regulatory adherence and safeguard long-term market integrity, according to Sette.
The dip in GSS bond issuance is also attributed to macroeconomic factors such as inflationary pressures, trade uncertainty, and geopolitical tension. Despite these challenges, the market's evolution and investor focus on impact and transparency will continue to support the GSS bond market.
In terms of specific bond types, while the issuance of GSS bonds remained relatively stable, the issuance of sustainability-linked bonds (SLBs) fell sharply, reaching the "weakest H1 issuance on record" at $421 million.
Despite the fluctuations in the market, the GSS bond market hit $966 billion, marking the highest level in three years. The Omnibus reform, which has reduced the scope of mandatory sustainability reporting and postponed disclosure obligations for listed SMEs, may further contribute to this growth in the future.
In conclusion, while the global GSS bond market has seen a decline in the first half of 2025, the UK has shown resilience in green bond issuance. The focus on impact, transparency, and regulatory adherence will be crucial in shaping the future of the GSS bond market.
[1] Source: Global Islamic Finance Report 2025 (GIFR) [2] Source: The Asian Development Bank's Sukuk Market Report 2025 [4] Source: The Gulf Bond and Sukuk Association (GBSA) 2025 Half Year Report
Businesses and investors alike must pay close attention to the evolving regulation in the personal-finance sector, as it remains a key driver shaping the future of the GSS bond market. The uptake of the EU Green Bond Standard, for instance, underscores the increased focus on impact and transparency within the industry.
Adhering to tougher standards and closing persistent gaps in transparency will not only safeguard long-term market integrity, but also strengthen regulatory compliance across various financial instruments, including investing in Green Bonds, personal-finance strategies, and more.
