The ASEAN sustainable debt market continued to grow rapidly in 2021, setting a record of issuance of green, social, and sustainability (GSS) bonds and loans totalling USD24 billion, up 76.5 per cent year-on-year, along with an additional USD27.5 billion of sustainability-linked bonds and sustainability-linked loans issuance, representing a three-fold growth from 2020 volume. This market expansion reflects enduring regional enthusiasm in supporting the sustainability agenda amidst the pandemic, including financing the recovery from COVID-19, as well as facilitating long-term, low carbon, and climate-resilient economic growth.

With the support of HSBC, the Climate Bonds Initiative releases the fourth report under the ASEAN Sustainable Finance State of the Market Series which presents the progress on the region’s sustainable finance market during 2021. The report highlights new developments in the GSS market, covering green debt (bonds and loans) and the wider labelled bond market, including other types of Use of Proceeds bonds (i.e., social bonds and sustainability bonds). Compared to previous editions of the report, the scope of coverage in this report has been extended to cover transition bonds, performance-linked instruments (i.e., sustainability-linked loans and sustainability-linked bonds), and unlabelled climate-aligned bonds.

In addition to highlighting new regional sustainable finance initiatives, the report provides country-level updates for Indonesia, Malaysia, the Philippines, Singapore, Thailand, Vietnam and Cambodia, focusing on notable deals, policies and initiatives that countries have put in place in 2021 to encourage the growth of sustainable finance in ASEAN. Finally, the report concludes with an outlook on the market, including suggesting a list of potential actions that could help further advance the ASEAN sustainable finance market.


Read the full report here


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