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
Add BT as a preferred source
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.
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Copyright SPH Media. All rights reserved.
TRENDING NOW
On the board but frozen out: The Taib family feud tearing Sarawak construction giant apart
OCBC consumer banking chief Sunny Quek aims to double wealth business by 2029
‘We’re not a bubble tea brand’: Chagee aims to double Asia-Pacific footprint to 600 stores by 2027
UMS Integration closes 10.2% higher after posting ‘strong’ double-digit sales growth in Q1
