Dollar Bond Issuance In Asia Has Hit An All-Time High Over 40% Since 2016

According to the Monetary Authority of Singapore, expansions and the high-demand for development in the region will ramp up financing and capital in Singapore. They have also pointed out that while more companies start more expansions, both globally and regionally, capital raising will increase the diversity of Asian assets.

Since most bonds are in US dollars, dollar-denominated bonds are issued outside the United States. The dollar bond issuance in Asia has hit an all-time high of $400 billion which is over 40% from 2016. The Asian-Pacific region also experienced a one-third equity increase through public offers.

This region has drawn major venture capital and private equity investments. Asian investments have gone well beyond European investments, reaching well-over #160 billion dollars which accounts for 30% of all global investments. With approximately 7,000 start-ups, Asia has plenty of opportunities for investments throughout the region. This has drawn the attention of many investors around Asia and other regions.

The demand for financing infrastructure has surpassed other countries which means Asia will need approximately $1.7 trillion dollars, yearly, for infrastructure to sustain its economic growth between now and 2030. As of date, over 90% of investments for infrastructure has been performed through governments. The value of dollar bond issuance, not including Japan, is up 40% from 2016.

During a meeting in Singapore, financial managers decided to ramp up the development of infrastructure through private capital. It is believed that the prospects are very good with a strong channeling of projects in the transportation and energy industries.

Singapore is working with various industry partners to secure regional project loans from banks and securities backed by a pool of debt or low-rated corporate loans for institutional investors, including insurance companies and pension funds, to invest in.

Creating investment standards to make infrastructure an excellent asset for investing is on the horizon. As of late, many large investors are looking to Asia which reflects the growing demand for Asian infrastructure debt.

Due to the increase in development throughout Asia, financing and capital are on the rise. The more investments, the more expansions are expected to take place both regionally and globally. This growth will certainly add to increased diversity in Asian assets and a great deal of future growth.



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