Bank of America and BNP Paribas are well placed to secure the top two spots in the sustainable bond lead manager tables for 2023, currently nudging 2022's top underwriter JP Morgan into third place.
According to provisional figures from Environmental Finance Data, with less than three weeks of 2023 to go, Bank of America tops the tables both for number of sustainable bond deals it has been lead manager on as well as the volume share* of its deals.
The US underwriter and its subsidiaries have been lead manager on 288 green, social, sustainability and sustainability-linked bond deals in 2023 to date with a combined volume share of $44.7 billion (see Table).
French rival BNP Paribas is currently in second place having underwritten 229 sustainable bond deals in 2023 with a combined volume share of $43.9 billion.
US bank JP Morgan, meanwhile, is in third place after being involved in 227 deals with a volume share of $41.4 billion in 2023. In 2022, JP Morgan topped the sustainable bond lead manager tables having supported $43.8 billion worth of deals – just ahead of Bank of America and BNP Paribas on $40.1 billion and $39.7 billion, respectively.
Bank of America has been helped to top of the table after being involved in four of the top five largest sustainable bond deals of 2023. This included sovereign green bond issuances from Italy in April and Germany in May worth €10 billion and €5.25 billion, respectively, as well as the €6 billion green bond from the EU in April and €5 billion social bond from Cades in January.
| Top 5 sustainable bond lead managers in 2023 (as of 12 December)” |
|---|
| Lead Manager | Number of deals | Volume share* |
|---|
| Bank of America | 288 | $44.7 billion |
| BNP Paribas | 229 | $43.9 billion |
| JP Morgan | 227 | $41.4 billion |
| Citi | 226 | $38.5 billion |
| Crédit Agricole CIB | 195 | $32.9 billion |
| Source: Environmental Finance Data (efdata.org) |
Indeed, sovereign sustainable bond issuance has been a key growth area for the market in 2023 – even if there are expectations for a slowdown in 2024, especially in Europe. According to Environmental Finance Data, sovereign sustainable bond issuance is up 47% in 2023 to date compared to 2022 levels – whereas no other issuer type has delivered even double-digit percentage growth in 2023 to date, and corporate issuance is down 14% on 2022 annual totals.
"2023 has seen a surge in sovereign sustainable bonds, from both new and returning issuers," said Environmental Finance Data senior research analyst Ashton Rowntree. "With over $158 billion issued in 2023 so far, it has been the biggest year for sovereign issuers on record and has buoyed the sustainable debt markets, while corporate issuers have struggled in the higher interest rate environment."
As a result, it is unsurprising that the top five lead managers in 2023 to date have also secured robust top five positions in the sovereign sustainable bond lead manager table.
Nonetheless, there is still the potential for the top of the table to change over the remainder of 2023 as the annual total edges towards $1 trillion.
"Whilst the remaining weeks of 2023 are not likely to see huge volumes of sustainable bonds issued, there is still enough time and potential issuance to affect the top of the lead manager league table," said Environmental Finance Data strategist Ben Smith.
Smith added that more than 100 bonds worth around $27 billion were issued between 12 December 2022 and the end of 2022, with the most active lead manager picking up a volume share of $2.1 billion over that period.
"Of the current front runners in the league table the largest spread in activity same time last year was $1.2 billion which, if replicated or surpassed in 2023 could see the lead manager league table top spot change hands," he added.
* Volume share is calculated by equally distributing bond proceeds to each lead manager working on the transaction. For example, a $1 billion bond with five lead managers would provide each lead manager with a $200 million volume share from the deal.
FAQs
Debt ratings
| agency | Short-Term | Date of last review |
|---|
| Standard & Poor's | A-1 | 24/04/2023 |
| Fitch | F1+ | 03/07/2023 |
| Moody's | P-1 | 15/02/2024 |
| DBRS | R-1 (middle) | 21/06/2023 |
By committing itself fully to generating a positive, real-world impact with all stakeholders. The Group is therefore committed to make a sustainable and inclusive contribution to the environmental, societal, technological and economic challenges of our time.
What is the credit rating of BNP Paribas SA? ›
Ratings banking entities
| BNP Paribas Fortis SA/NV | Long-Term Senior Debt / Outlook / Short-Term |
|---|
| S & P | A+ / Stable Outlook / A-1 |
| Moody's | A2 / Stable Outlook / P-1 |
| Fitch | AA- / Stable Outlook / F1+ |
| Annual report | Annual report |
BNP Paribas was awarded “World's Best Bank” and “World's Best Bank for Sustainable Finance” by the leading trade magazine Euromoney.
Is BNP Paribas better than JP Morgan? ›
J.P. Morgan scored higher in 9 areas: Overall Rating, Culture & Values, Diversity & Inclusion, Senior Management, Compensation & Benefits, Career Opportunities, CEO Approval, Recommend to a friend and Positive Business Outlook. BNP Paribas scored higher in 1 area: Work-life balance.
What is the highest salary in BNP Paribas? ›
Salary estimates are based on 13.1k BNP Paribas salaries received from various employees of BNP Paribas. BNP Paribas employees rate the overall salary and benefits package 3.4/5 stars. What is the highest salary in BNP Paribas? The highest-paying job at BNP Paribas is a Director with a salary of ₹93.3 Lakhs per year.
Is BNP Paribas doing well? ›
BNP Paribas continues to demonstrate its ability to generate value and confirms its 2024 trajectory, with revenue growth expected to surpass 2% compared to 2023 and Net Income above the 2023 distributable result. BNP Paribas also said for this year, its goal is to generate full-year earnings of more than €11.2 billion.
What is the sustainable finance strategy of BNP Paribas? ›
Financing low-carbon energy
This includes hydroelectric, solar, wind, and, to a lesser extent for BNP Paribas, nuclear and biofuel power, all of which emit no greenhouse gases and are therefore low-carbon. The Group aims to ensure that they account for 80% of its financing for energy generation by 2028 and 90% by 2030.
Is BNP Paribas prestigious? ›
In the Forbes Global 2000, BNP Paribas was ranked as the 33rd largest public company in the world. It has been designated as a Significant Institution since the entry into force of European Banking Supervision in late 2014, and as a consequence is directly supervised by the European Central Bank.
Is BNP Paribas at risk? ›
MARKET RISK
BNP Paribas Group is exposed to market risk mainly through trading activities carried out by the business lines of its Corporate & Institutional Banking (CIB) operating division, primarily in Global Markets, which represented 17% of the BNP Paribas Group's revenue in 2023.
HSBC scored higher in 7 areas: Overall rating, Culture and values, Diversity and inclusion, Senior management, Compensation & Benefits, Career opportunities and Positive Business Outlook. BNP Paribas scored higher in 2 areas: CEO approval and Recommend to a friend. Both tied in 1 area: Work-life balance.
What tier is BNP Paribas? ›
Tier two would be Goldman Sachs, Barclays Capital, Credit Suisse, Deutsche Bank, and Citigroup. Examples of tier three would be UBS, BNP Paribas, and SocGen. Being a bulge bracket bank does not necessarily mean it is rock solid.
What is the BNP Paribas bank scandal? ›
NEW YORK, April 18 (Reuters) - BNP Paribas (BNPP.PA) , opens new tab was ordered by a U.S. judge on Thursday to face a lawsuit accusing the French bank of helping Sudan's government commit genocide between 1997 and 2011 by providing banking services that violated American sanctions.
Who is BNP Paribas owned by? ›
Share ownership
| In % of voting rights | |
|---|
| BlackRock Inc. (1) | 6.9% |
|---|
| Retail shareholders (4) | 5.9% |
| European institutional investors (4) | 37.7% |
| Non-European institutional investors (4) | 32.5% |
5 more rowsOr advancing on its climate ambitions? Yet there is one cliché that is unavoidable: that BNP Paribas is the poster child for sustainable banking at scale. Winner of the world's best bank for sustainable finance award for the third year in a row, the French bank is doing all of these things and more.
Is BNP Paribas a reputable bank? ›
As the European Union's top bank, BNP Paribas stands out due to its robust integrated and diversified model structured around three operating divisions.
Is BNP Paribas a top bank? ›
With its total assets amounting to €2,597 billion, HSBC comes out on top as the largest in Europe by asset, followed by BNP Paribas and Crédit Agricole. Like what you're reading? Click here to learn more about Insider Intelligence's leading Financial Services research. Here are the 50 Largest Banks in Europe (2022):
What is the Fitch rating of BNP Paribas? ›
Fitch Affirms BNP Paribas Bank Polska SA at 'A+'; Outlook Stable. Fitch Ratings - Warsaw - 06 Dec 2023: Fitch Ratings has affirmed BNP Paribas Bank Polska SA's (BNP BP) Long-Term Issuer Default Rating (IDR) at 'A+', with a Stable Outlook and its Shareholder Support Rating (SSR) at 'a+'.
