The corporate bond market of the People’s Republic of China (PRC) has marked its significance in the development of corporate bond markets of ASEAN+3. The outstanding corporate bond market size of the PRC is the biggest in the region, with key issuers coming from the banking and the real estate sectors. What is remarkable about the PRC’s corporate bond market is the openness to cross-border transactions, which includes the issuance of panda bonds and dim sum bonds. The PRC is also gearing up for the emergence of new corporate bond products, particularly thematic bonds.

This research presents the trends in cross-border corporate bonds in ASEAN+3 (which is composed of the 10 ASEAN member countries, People’s Republic of China, Japan and Korea). The interregional flow of cross-border corporate bonds denominated in local currencies of ASEAN+3 countries is still in nascent stages, but there are already initiatives to encourage more issuances of cross-border corporate bonds in the region. With this, CGIF has been instrumental in encouraging eligible corporates to explore cross-border bonds for financing.

This research consolidates the key findings from CGIF’s country-level research papers. This shows the unique characteristics of each corporate bond market of ASEAN countries, as well as the differences in terms of their developmental stages.

The Philippines has been active in developing its corporate bond market. Improvements in corporate bond regulations also helped in encouraging issuers to tap the corporate bond market for funding. With increased awareness on sustainability, Philippine-based issuers are becoming open to green bond issuances in sectors such as renewable energy, financials and real estate.

Viet Nam’s corporate bond market has grown significantly, as marked by the continual issuances of VND-denominated corporate bonds. The changes in regulations related to its bond market also serve as foundations for development in the coming years. Viet Nam is gearing up for better processes in encouraging bond issuances and improving market transparency.