South-east Asian green bond demand will soon grow
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Subject Prospects for the South-east Asian green bond market. Significance South-east Asia has been slow to capitalise on the global boom in 'green' financing, but is likely to become a prominent issuance source within a few years. Drivers will include demand for infrastructure funds and commitments to climate change policies. Impacts Regulators will need to keep pace with the industry's evolution, or risk undermining investor confidence. Immature bond markets will hamper issuance growth in emerging ASEAN economies. As they embrace more sustainable lending policies, banks will be important in developing green bonds. Green bonds face competition from other, cheaper financial instruments.