A further slowing in growth
Increased global liquidity, Asia’s growing wealth and the rise of the regional investor base have made the US$ Reg S market an increasingly important source of funding for Asia Pacific issuers. NAB sees US$ Reg S issuance from Australian corporates tripled from 2016 to 2017, with ample room to grow.
This report examines the recent growth and future prospects of the US$ Reg S bond market in the Asia Pacific region. Based on the views of NAB specialists, internal and external data, and independent research, key findings include:
The market’s growing depth and relative openness has convinced more Australian issuers, many of which were previously focused on the domestic dollar market, to explore US$ Reg S funding. Recent NAB data confirms the rising interest in US$ Reg S issuance among Australian corporates, with total issuance more than doubling from US$775 million for all of 2016 – the first year Australian firms accessed the market – to US$1.6 billion in the first nine months of 2017 alone. With Australian borrowers accounting for just 1% of the US$ Reg S market, there is ample room for growth, and that proportion is expected to rise to 2-3% by 2018.
To read the full report and the infographic, please download:
Full report: Development and diversity: US$ Reg S comes of age in Asia Pacific (PDF, 3 MB)
Infographic: The opportunities of US$ Reg S for Australian issuers (PDF, 256 KB)
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