Article

Asian Green Bond issuance calms down in the absence of Chinese issuers

Post Date: 10/04/2018

By Ioannis Gougoulias

The following data were retrieved using CMDportal's Data Sheet and Instrument Search tool.



Asian Green Bond issuance calms down after surprising 2017 performance.


Although 2017 has been an extraordinary year for Asian Green bond issuance, things in 2018 so far have calmed down. Green Bond issuance in 2017 skyrocketed to USD23bn from USD9.5bn in 2016. Despite the sharp increase this pattern does not appear to be the case for 2018. Compared to 2017 YoY, Green Bond issuance has dropped almost 40% to USD2.8bn. Chinese issuers, who mostly contributed in the 2017 Q1 Green bond issuance, are absent in 2018 so far. The only Chinese Green bond issuer in Modern Land China. As a result, the largest contributor is Indonesia with its USD1.25bn inaugural Asian Green Offshore Sukuk Bond (read more here). Other issuers include Swire Properties with its first Green bond (read more here) and MUFJ Group, who priced a EUR500m Green bond in late January (read more here).


The following excerpt is included in CMDportal's 2018 Winners in Debt Capital Markets hard copy publication. To access the full PDF version follow this link: 2018 CMD Awards.

Green Bonds from Asian Borrowers more than double during 2017. In total Green Bond issuance from Asian borrowers increased 233% or USD11.3bn to USD16.4bn. In 2016 the market grew 82%. This clearly is one of the fastest growing segments of the Asian bond markets. Large contributors included the China Development Corporation, Bank of Beijing Co, the Industrial Commercial Bank of China and Mizuho Financial Group. None of these issuers had issued in the Green format before. Out of the top 23, there were 21 new Asian green bond issuers. The number of countries from where these issuers came also increased, by 2 from 5 to 7. China and Hong Kong account for the majority, followed by India, Japan and South Korea. The new Asian green bond issuer locations are Malaysia and Singapore. After FIGs and SSA Development Banks, most supply came from the Energy sector. For example, China Three Gorge Corporation printed a EUR650m 7-year green bond. Azure Power debuted with an USD500m 5-year green bond and Greenko presented a 5-year and 7- year dual-tranche USD350m and USD650m green bond. With air, soil and water pollution a big topic in China these growth rates are expected to continue.


Where is this data coming from?


CMDportal is the global bond and money market data utility connecting issuers, dealers and investors. The service aggregates data from a wide range of sources, including issuers, dealers and fund investors recording both who issued, who traded and who bought the instruments.


Can I produce a Debt Capital Market statistical query like this?

Yes you can. CMDportal provides a wide range of tools to analyse bond and money markets. Data Sheet results can be downloaded as an XLS file.


Mr. Gougoulias is an Analyst at CMDportal. He can be reached at analysts@cmdportal.com.