From kangaroos to dim sum, foreign borrowers rush into Asia-Pacific bond markets
It is not just Big Tech grabbing funding wherever it can in a world of rising uncertainty and record borrowing.
Foreign borrowers are increasingly investing in Asia-Pacific bond markets, with Germany, France, Henkel, Singapore Airlines, and Portugal among the latest to sell bonds in Australian dollars and China's renminbi. Australian dollar "kangaroo" bond sales have hit a record high of A$60 billion this year, up 40% from 2025, while Hong Kong dollar issuance also reached a record.
Chinese onshore and offshore renminbi bond sales reached record highs of 160 billion yuan and 350 billion yuan, respectively, in the first half of 2026, a 60% increase from the same period in 2025. This surge in international borrowing is driven by a need to diversify funding sources, as AI investment booms and government deficits increase borrowing demands worldwide.
Issuers are also attracted by lower borrowing rates in Asian currencies, particularly China and Japan, which offer more favorable terms for firms with local operations. Despite the nascent size of these markets, the trend shows no signs of slowing, with Brazil and Kenya potentially joining the ranks of panda bond issuers later in 2026.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
