APAC Issuers Flood Euro Bond Market Amid Diversification Push

Asia-Pacific issuers are increasingly turning to the Euro bond market for funding, with issuance rising by 82% year-over-year in 2025 to €84.7 billion.

This shift is driven by a combination of factors, including a need for currency diversification and lower euro yields compared to US dollar-denominated debt.

'Last year's market volatility prompted sovereign and corporate issuers to diversify funding currencies and mitigate single-currency concentration risk,' said Ed Tsui, Head of DCM and Syndicate for Asia Pacific at Deutsche Bank.

The Euro bond market offers a range of benefits to APAC issuers, including lower borrowing costs and greater flexibility in debt management. The market also supports a wider range of maturities, including off-benchmark tenors such as four, six, eight, and twelve years.