ASEAN bond sales set to hit record in 2013

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ASEAN bourseBond sales of companies from ASEAN countries are likely to rise at least 20 per cent from last year’s $101 billion of credit notes issued in local and foreign currency, mainly US dollars, Malaysia’s CIMB Group said in a statement. This would mean an eighth straight year of record bond sales in the region as it has been increasingly able to finance itself as opposed to opt for credit from international organisations such as the IMF or the World Bank.

New multi-billion bonds are expected this year from Thailand’s PTT Global Chemical, Indonesia’s PT Bank Rakyat and Singapore’s Keppel Corporation, among others, according to Bloomberg.

New bond issues increased five-fold since 2000 after ASEAN countries recovered from the 1997/98 debt crisis and restructured their financial services sector.

Financing through bonds will not only be used for company expansion, but also to finance infrastructure projects in the region. According to the ASEAN Secretariat, the bloc needs financing of $60 billion annually over the next ten years to upgrade or built new infrastructure.

The total value of outstanding government and corporate bonds in the region rose to $1.1 trillion last year from $218 billion in 2000, according to the Asian Development Bank. Local investors hold 88 per cent of domestic government notes in the Philippines, 85 per cent in Thailand and 73 per cent in Malaysia, its data show. The proportion held by investors from other Asian countries rose to 9.4 per cent in 2011 from 4.2 per cent in 2001.

 

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Reading Time: 1 minute

Bond sales of companies from ASEAN countries are likely to rise at least 20 per cent from last year’s $101 billion of credit notes issued in local and foreign currency, mainly US dollars, Malaysia’s CIMB Group said in a statement. This would mean an eighth straight year of record bond sales in the region as it has been increasingly able to finance itself as opposed to opt for credit from international organisations such as the IMF or the World Bank.

Reading Time: 1 minute

ASEAN bourseBond sales of companies from ASEAN countries are likely to rise at least 20 per cent from last year’s $101 billion of credit notes issued in local and foreign currency, mainly US dollars, Malaysia’s CIMB Group said in a statement. This would mean an eighth straight year of record bond sales in the region as it has been increasingly able to finance itself as opposed to opt for credit from international organisations such as the IMF or the World Bank.

New multi-billion bonds are expected this year from Thailand’s PTT Global Chemical, Indonesia’s PT Bank Rakyat and Singapore’s Keppel Corporation, among others, according to Bloomberg.

New bond issues increased five-fold since 2000 after ASEAN countries recovered from the 1997/98 debt crisis and restructured their financial services sector.

Financing through bonds will not only be used for company expansion, but also to finance infrastructure projects in the region. According to the ASEAN Secretariat, the bloc needs financing of $60 billion annually over the next ten years to upgrade or built new infrastructure.

The total value of outstanding government and corporate bonds in the region rose to $1.1 trillion last year from $218 billion in 2000, according to the Asian Development Bank. Local investors hold 88 per cent of domestic government notes in the Philippines, 85 per cent in Thailand and 73 per cent in Malaysia, its data show. The proportion held by investors from other Asian countries rose to 9.4 per cent in 2011 from 4.2 per cent in 2001.

 

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