Dollar bond issuance jumps in Asia as Iran truce spurs demand

Bloomberg Updated - June 25, 2025 at 09:49 AM.

Dollar bond issuance climbed in the Asia Pacific, led by Japan, after a ceasefire between Israel and Iran boosted investor appetite

Easing Middle East tensions have encouraged a slew of bond deals as market sentiment improves | Photo Credit: jroballo

Issuers in the region have already sold about $9.5 billion of the debt this week, the most since the last full week of March, when they completed about $26 billion of deals to get ahead of US President Donald Trump’s “Liberation Day” tariff announcement. 

Japan’s Honda Motor Co. is marketing a multi-part offering in the US currency on Wednesday, putting it on course to join Toyota Motor Corp. and Nomura Holdings Inc. that tapped the market on Tuesday. At least one borrower from China is also looking to sell such debt Wednesday.

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Easing tensions in the Middle East over the past two days have encouraged issuers globally to go ahead with a slew of bond deals as sentiment improves. Yields on Asian investment-grade dollar bonds, an indicator of what borrowers are paying to sell their debt, fell to around 4.8 per cent on Tuesday, the lowest level since early April, a Bloomberg index shows. 

The second half of June is typically a busy period for Japanese issuance as companies seek to raise funds after their annual shareholder meetings. Nomura, for one, held its shareholder gathering on Tuesday.

More stories like this are available on bloomberg.com

Published on June 25, 2025 04:19

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