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South-east Asia’s ESG bond issuance extends decline with 75% drop in Q2 2025

Environmental, social and governance loans see a smaller decrease, with funds raised dipping 7.6% to US$7.7 billion

Janice Lim
Published Mon, Sep 22, 2025 · 07:00 AM
    • The decline in ESG bond proceeds in South-east Asia is somewhat of an outlier.
    • The decline in ESG bond proceeds in South-east Asia is somewhat of an outlier. PHOTO: YEN MENG JIIN, BT

    [SINGAPORE] Proceeds raised from environmental, social and governance (ESG) bonds in South-east Asia fell sharply in the second quarter of 2025, extending its year on year decline for the second straight quarter.

    ESG bond proceeds fell 74.8 per cent to US$1.6 billion in the three months to June 2025, compared with US$6.2 billion in the same period a year earlier, according to financial data provided by LSEG.

    ESG loans performed better, with funds raised dropping 7.6 per cent to US$7.7 billion from US$8.4 billion over the same period.

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