ASEAN Green Finance State of the Market 2019 report is an analysis of the issuance of green bonds and green loans in Southeast Asia. Following Climate Bonds Initiative’s (CBI) first ASEAN Green Finance State of the Market 2018, this 2019 report reviews the progress made across the regional green finance landscape and emerging opportunities for more green bonds, loans and sukuk amongst ASEAN nations.
Globally, the volume of green bond and loan issuance rose sharply by over 50%, from USD171bn in 2018 to USD258bn in 2019, buoyed by strong interest from both investors and issuers.
- ASEAN issuance almost doubled, reaching USD7.8bn in 2019 from USD4.1bn in 2018, supported by new regulations and guidelines. Two-thirds of the proceeds are allocated to the Buildings and Energy sectors.
- ASEAN issuance represented 3% of the global total and 12% of the Asia-Pacific region in 2019, up from 1% and 5% in 2018, respectively.
- Cumulative ASEAN issuance since 2016 stands at USD13.4bn as of December 31st 2019.
- 2019 saw the rise of Singapore as a regional leader, contributing to 55% of the ASEAN green debt issuance in 2019, up from 29% in 2018.
The report also focuses on policy developments amongst Southeast Asian nations relating to green debt issuance, including the ASEAN+3 Bond Market Forum and ASEAN Bond Market Initiative.
Efforts by Singapore and Malysia to grow their presence as sustainable and green finance hubs are noted, as is the potential for MDBs and DFI's to play an increasing role in supporting initial issuances and building global pension fund engagement in green infrastructure and transition investment.
ASEAN Green Finance State of the Market 2019 is can be downloaded here.