Asia bond issues hit record high

TOTAL proceeds from bond offerings by Asia Pacific issuers started strong this year with a 4.1 per cent increase from the first half of 2011 to US$356.3 billion.

This is the highest semi-annual volume on record, despite the 19.0 per cent decline in new issues to 1,425 from 1,760.

According to Thomson Reuters Asia Pacific (excluding Japan) Debt Capital Markets Preliminary Financial Advisory Review, Chinese borrowers accounted for 27.8 per cent of the region's primary issuance with US$98.9 billion, down 12.0 per cent from the first half of 2011, and bringing North Asia's bond offerings to US$193.8 billion (down 1.9 per cent) thus far. The report said Southeast Asian borrowings grew significantly to reach US$57.6 billion, up 26.3 per cent from the first six months last year, driven by a significant increase in issuance from Singapore with US$14.4 billion (up 68.2 per cent), Indonesia (US$10.8 billion, up 95.5 per cent) and Thailand (US$6.5 billion, up 56.4 per cent). Asia Pacific corporate borrowers raised US$316.2 billion in proceeds, the highest semi-annual start on record, up 8.1 per cent from the first half of 2011. Bernama