Green bonds to grow in Asia, but issuers face greater scrutiny, standards

Asia-Pac companies sold US$124.53b of green bonds in 2021, up from US$54b in 2020, but those that fail to adapt will see smaller pools of capital, higher funding costs

Angela Tan

Published Mon, Mar 7, 2022 · 05:50 AM

Bonds

Singapore

GREEN bonds are set to be the fastest-growing segment in Asia's debt markets in 2022, but borrowers can expect to face greater scrutiny - not just from lenders and investors, but also governments and regulators - which means those that fail to adapt will see smaller pools of capital and face higher funding costs, experts say.

"For polluting entities that decline to curb emissions, lenders and investors are walking away, governments are getting involved, and regulators are stepping in," said Charles Chang, S&P Global Ratings' Greater China Country Lead for corporates.