The European Union’s (E.U.) first social bond offering saw approximately $275 billion in orders likely making it the largest demand for any bond offering. The issue was nearly 14 times oversubscribed highlighting the growing demand for Environmental, Social and Governance (ESG) bonds relative to their counterparts during the COVID-19 pandemic. “I was expecting a three-digit book but not quite this high. These bonds were clearly eagerly awaited, and these issues only strengthen the picture that there is a huge demand for bonds at the moment,” commented Nordea Bank’s chief strategist Jan von Gerich. As of October 2020, the E.U. has issued $71.9 billion in social bonds and is expected to issue a total of $118 billion by the end of 2020. Social bonds are defined by funding for projects that help society, such as improving social welfare or serving disadvantaged populations.

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