Asean companies turning to debt capital markets, as equity nervousness reigns

GLOBAL activity for mergers and acquisitions and initial public offerings (IPOs) is down in the first nine months of 2022, but industry players said bond markets in South-east Asia are looking like a resilient source of liquidity as the region reopens.

Fund managers and financial sponsors are expected to soon deploy their high levels of cash, industry watchers said, although they will likely look for opportunities among the more defensive plays.

“With the reopening of economies in the region, the Asean markets continue to require financing to fund growth and investment,” said Edmund Leong, head of group investment banking at UOB.