Wahyu Dwi Anggoro
IDXChannel - The sustainable bond market of the Association of Southeast Asian Nations (ASEAN) member countries, China, Japan, and South Korea expanded 29.3% in 2023, outpacing the 21% growth of the global and euro-area sustainable bond markets, according to a new report by the Asian Development Bank (ADB).
Outstanding sustainable bonds in these economies, known collectively as ASEAN+3, reached USD798.7 billion by the end of 2023 and accounted for around 20% of global sustainable bonds, according to the latest edition of Asia Bond Monitor, released today (21/3/2024).
“ASEAN sustainable bond issuance made up a higher share of local currency financing and long-term financing in 2023, driven by public sector participation,” said ADB Chief Economist Albert Park in a media release.
“The public sector’s participation not only adds to the supply of sustainable bonds, but also serves as a model case for the private sector and helps set a long-term pricing benchmark for these bonds in domestic markets," Park added.
ASEAN markets recorded USD19.1 billion of sustainable bond issuance last year, accounting for 7.9% of aggregated issuance in ASEAN+3 sustainable bond markets. This compares with ASEAN’s 2.5% share of ASEAN+3’s general bond issuance.
