This report ASEAN Green Finance State of the Market 2019 reviews the progress made across the regional green finance landscape and emerging opportunities for more green bonds, loans and sukuks in the ASEAN nations. It analyses green bond and loan issuance in the region, provides some examples of the wider labelled bond market in the region, and includes a contribution from the ASEAN+3 Asian Bond Markets Initiative (ABMI) about its work supporting the growth of the local green bond markets in ASEAN. Finally, it also provides country-level overviews and policy updates for Indonesia, Malaysia, the Philippines, Singapore, Thailand, Vietnam, and, in addition to the 2018 report, Cambodia, Laos, and Myanmar.
Key highlights
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 Malaysia 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.