Green bonds lead as LatAm sustainable issuance slows

Research evidence excerpt

Green bonds lead as LatAm sustainable issuance slows

Accessible version

LatAm Sustainability

Green bonds lead as LatAm sustainable

issuance slows

Sustainable debt loses momentum 08 July 2026

Labeled bond issuance in Latin America slowed sharply in 1H26, declining 32% YoY to Latin America

$3.8bn. The pullback came with a broader slowdown in regional primary markets, with

Carlos Assumpcao, CFA

total corporate bond issuance down 14% YoY to $43.4bn. Labeled bonds represented 9% Research Analyst

of total corporate supply, versus 11% a year earlier, suggesting sustainable formats Merrill Lynch (Brazil) +55 11 2188 4025

remain relevant but have become less central in a more selective market. Issuers are still carlos.assumpcao@bofa.com

able to print, but investors appear focused on structure, use of proceeds & issuer quality. Anne Milne

Research Analyst

Green bonds take the lead BofAS+1 646 855 4096

Green bonds drove activity in 2Q26, representing 78% of labeled issuance, up from 24% anne.milne@bofa.com

in 2Q25. Sustainability bonds accounted for the remaining 22%, compared with 43% a Isabella Pacheco Research Analyst

year earlier, while no social bonds, sustainability-linked bonds or other labeled structures Merrill Lynch (Brazil)

came to market during the quarter. This reinforces a more selective tone, as investors +55isabella.pacheco@bofa.com11 2188 4487

and issuers appear to favor clearer use-of-proceeds frameworks, while KPI-linked Kay Hope

formats remain absent from new supply. Research Analyst

MLI (UK)

+44 20 7995 9301

kay.hope@bofa.comConcentration defines the market

Issuance was concentrated by geography and sector. Chile led 2Q26 supply with $1.1bn, GEMS Corporate Credit Rsch

BofAS

or 54% of the quarterly total, followed by Brazil at 25% and Argentina at 20%.