(30 October 2023 – Singapore) The Monetary Authority of Singapore’s (MAS) report “Singapore Corporate Debt Market Development 2023” reveals growing opportunity for corporates to tap into Singapore’s burgeoning green, social, sustainability and transition (GSS+) market.
Corporate demand for labelled structures has remained elevated despite activity across traditional issuance deteriorating according to the 2023 report. MAS highlighted 2022 GSS+ activity as having exceeded aggregate issuance volume across 2019 and 2020 combined, “signalling a continuing mainstreaming of GSS+ bonds”.
MAS’ research forecasts Asia’s bond markets will bounce back through 2023, driven by the refinancing needs of corporate issuers as interest rate conditions stabilise and over the medium term to finance the regional transition to net zero.
The MAS has also issued a set of consultation papers proposing guidelines on transition planning by banks, insurers and asset managers to enable the global transition to a net zero economy.
“In general, we see corporates deleveraging amidst more cautious business sentiments, and establishing bank contingency credit lines to meet immediate funding needs. Many have also termed out their debt in previous years with longer term bond issuances” commented DBS Global Head of Fixed Income, Clifford Lee for CorporateTreasurer.
“We expect Singapore corporates to grow increasingly regional and international, and in so doing, increasingly access a broader base of investors across international and domestic Asian markets” Lee added.