In Q2 and Q3, 18 RDCP issuers came to market with a total of $24bn in new debt.
USD-denominated issuances were dominated by Kroger, the US supermarket chain, which placed a seven-tranche $10.5bn deal in August. Kroger is exposed to deforestation risk through its use of palm oil, soy, beef, timber, and pulp & paper.
EUR-denominated issuances lagged, with multinational food companies Danone and General Mills bringing the largest deals that could be exposed to deforestation risks.
ESG-labelled debt usage has reduced in this period. Investors can support these structures to improve transparency in an environmentally important area.
