Singapore bond issuance hits record US$95 billion in 2025, up 21.8%: MAS
Broader corporate participation and refinancing needs lifted activity
Singapore's bond market issuance soared 21.8% in 2025 to a record US$95 billion, as reported by the Monetary Authority of Singapore (MAS). The rise was fueled by refinancing needs and regional demand for capital in sectors like artificial intelligence, technology, and infrastructure. This marked a significant jump from the previous record of US$77 billion set in 2023.
The increase came amidst a global bond issuance surge of 7.7% to US$9.8 trillion in the same year, driven by improved funding conditions due to easing monetary policy. Asia ex-Japan G3 bond issuance, comprising bonds denominated in US dollars, euros, and yen, grew 12.1% to US$252 billion, with Southeast Asia experiencing rapid growth.
In the broader Singapore debt market, new issuance rose 10% to S$339 billion, while total outstanding debt arranged by financial institutions surged 6.8% to S$659 billion. The US dollar dominated issuance at 65.6%, followed by the Singapore dollar at 21.4%, the euro at 3.9%, and the sterling at 2.8%. Financial institutions were the primary issuers in both Singdollar and foreign currency markets, though their share decreased as more corporations ventured into the market.
Notably, financial institutions accounted for 64.9% of Singdollar issuance, with property companies, statutory boards, corporate special purpose vehicles, and other corporations making up the rest. MAS noted a more diversified issuer base, thanks to new entrants from sectors such as digital infrastructure, private capital, and consumer finance.
Singapore also continued to serve as a funding hub for foreign-currency issuances, exemplified by Seagate's US$3.2 billion bond issuance and Foxconn Singapore's 650 million euro deal. The covered bond issuance reached a record S$11 billion in 2025, with the market's outstanding size expanding to S$29.8 billion, marking a compound annual growth rate of 15% over the past four years.
However, the funding environment became less favorable in 2026, with renewed inflation concerns and higher energy prices prompting higher yields and borrowing costs. Despite this, MAS remains optimistic about the resilience of Asian bond markets, citing refinancing needs, robust investor demand, and continued demand for high-quality Singdollar assets amid global uncertainty.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
