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ESG bond issuances surge in SE Asia early 2024



Environmental, social, and governance (ESG) bond issuances in Southeast Asia have seen a significant uptick in early 2024, with proceeds climbing to USD5.1bn in Q1, marking a 27.4% increase from the previous year. This surge contrasts with a global increase of 10.7% and a 4.5% rise in the Asia-Pacific region. However, ESG loans in Southeast Asia decreased by 31.9%, primarily due to a sharp drop in sustainability-linked loans, which fell by 71.6%. Sean Henderson from HSBC notes a more diverse range of issuers, including corporates and sovereign entities, contributing to this growth. Additionally, growing regulatory incentives and investor demand are encouraging more issuers to integrate ESG strategies into their financial activities. Despite the dominance of green bonds, sustainability-linked bonds (SLBs) are gaining traction, with proceeds significantly exceeding the previous year’s total.

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