Record $46bn in fossil fuel bonds to mature by next year

Over $46 billion of bonds issued by the world's 30 largest fossil fuel companies are due to mature this year and in 2024, according to new research shared with Net Zero Investor.

The data reveals that Pemex ($6.5 billion), Shell ($5.6 billion), TotalEnergies ($3.7 billion) and ExxonMobil ($3.5 billion) are facing the largest amount of bonds maturing by the end of 2024, respectively. 

Meanwhile, the Adani Group, which made headlines earlier this year for alleged fraud and insider trading allegations, will need to refinance over 23% of its USD and Euro outstanding debt ($1.7 billion) by the end of 2024, the TB research showed.

Nick Haines of TB said that the top 30 fossil fuel companies which fund their expansion via the bond market will likely seek to refinance this debt to fund their coal, oil and gas expansion and operations.

Haines pointed out that "companies like the Adani Group and Glencore will serve as a litmus test for investors: will they deny new debt or continue to support companies engaged in coal expansion?"

Net Zero Investor's Annual Conference | 11th December 2023 | London

Banks

The researchers also looked into which banks primarily underwrite the fossil fuel issuers. 

JP Morgan, Citi, Bank of America and Barclays take the top spot, respectively, underwriting over 30% of the the 30 largest fossil fuel firms' bonds on the market. 

These banks were also the underwriters for a significant portion of new bonds issued by these firms since July 2022.

Despite the increasing number of commitments to cease lending to the fossil fuel industry, most banks continue to underwrite fossil fuel bonds, the report stated.

It concluded that banks have facilitated fossil fuel companies raise over €1 trillion in bonds since the signing of the Paris Climate Agreement.

Also read
AP6’s green chief on investment choices, pressuring managers and mitigating climate risks