Asia Bond Issuance Climbs to USD306bn, Highest Since 2021

Asia bond issuance has surged to USD306bn so far in 2025, the largest since 2021 and 47% higher year-on-year, Bloomberg data show. Borrowers across the region are stepping up fundraising in US dollars and euros as credit spreads tighten to historic lows. Japan’s Fukoku Mutual Life Insurance and Jera are considering dollar deals, while Korea National Oil and Mitsui prepare offerings. Investor appetite has been buoyed by Federal Reserve chair Jerome Powell’s signal that rate cuts may start in September. Asian investment-grade dollar spreads narrowed to a record 60 basis points earlier this month, encouraging issuers to secure long-term funding while conditions remain favourable.