Number 1 in the Export Finance sustainability league tables for 2020
Discover the TXF Intelligence report presenting the whole picture, including market analysis, and insights of sustainability in Export Finance.
Attention to sustainability in the export finance market has made significant advances since TXF started keeping records in 2018. Sustainable deals’ market share improved in 2019, but only a little, and this increase in share took place alongside a sharp fall in total volumes – sustainable transaction numbers and volumes both fell in absolute terms. In 2020, however, both volumes and numbers of sustainable transactions increased sharply, even as the market shrank yet again. Sustainable deals got bigger, but it is also now possible to discern a real increase in the importance of sustainability to the export finance market as well.
Priorities for banks and ECAs have changed dramatically when it comes to sustainability in the past two years, and lenders are now willing to consider larger and riskier deals if those deals can be clearly identified as sustainable. ECAs, on the other hand, are keen to participate in sustainable deals when they have the opportunity, although they are limited by the range of exporters that operate in their home countries.
The volume of deals that can be classified as both green and social has increased dramatically ($7.4bn in 2020 vs $0.6bn in 2019), driven by a small number of large financings in Africa and South East Asia.