ESG

S-E Asia ESG debt issuance lags global pace to fall for second straight quarter

Q2 2023 proceeds decline by 37.8 per cent year on year to US$3.2 billion amid broader debt market slowdown

Janice Lim

Published Mon, Jul 17, 2023 · 05:00 AM

ENVIRONMENTAL, social and governance (ESG) bond proceeds in South-east Asia shrank 37.8 per cent year on year to US$3.2 billion in the second quarter of 2023, in line with a wider downturn across debt markets due to high interest rates and economic uncertainty.

It was the second straight quarter of year-on-year decline, based on data from Refinitiv.

A similar downtrend hit ESG loans, with Q2 2023 loan amounts decreasing 22.5 per cent to US$3.7 billion from US$4.7 billion a year ago, the data showed.