This report by National Australia Bank (NAB) examines the recent growth and future prospects of the US$ Reg S bond market in the Asia Pacific region.
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, 285 KB)
Video script: Lorna Greene on US$ Reg S market in Asia Pacific (PDF, 29 KB)
The report is an unprecedented and comprehensive exploration of the forces driving the growth and shaping the future of the regional US$ Reg S bond market, which is fast emerging as one of the most promising from both the issuer and investor perspectives. NAB expects the Asia Pacific US$ Reg S market to grow 20% annually onwards.
Key findings include:
- A shifting landscape: 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
- Why US$ Reg S – and why now? While Chinese issuers and investors still are major players the regional US$ Reg S market, it is becoming more diverse, with Australian, Japanese, Indian and other regional corporates exploring US$ Reg S issuance due to its low costs and lighter documentation requirements versus other formats
- Get to know your investors: Although the growth of the Asia Pacific US$ Reg S market is expected to moderate in the near-term, investor demand is expected to remain robust given the region’s vibrant economic backdrop
- Future prospects: The pressing need to fund regional infrastructure under programmes such as China’s Belt and Road Initiative (BRI) will be a major future driver of Asia Pacific US$ Reg S issuance, which is also likely to include more green and social bonds to meet rising appetite for sustainable assets