Sustainable finance in APAC sees growth in Q3, ING reports

Sustainable finance saw a strong year-on-year growth in APAC for the third quarter of 2024, according to ING.

The financial services corporation's latest Sustainable Finance Pulse, which features insights and analysis from the evolving world of sustainable finance, reveals that despite a softer overall market for sustainable finance issuance in Q3 2024, green bond issuance showed a modest uptick.

Sustainability-linked loans and use-of-proceeds green bonds also drove a notable increase in volume mobilised in Q3, ING says, while global green bond issuance reached US$ 169 billion in Q3, exceeding the quarterly average of US$ 160 billion and significantly higher than the Q3 average of US$ 130 billion in previous years. 

The study also found a slight decline in overall sustainable finance issuance, with the total sustainable finance issuance for Q3 standing at US$ 385 billion globally, slightly below the quarterly average of US$ 400 billion, reflecting a supply concentration in the first half of the year, with lower issuance expected to persist through Q4. 

For 2025, ING is expecting an increased sustainable finance issuance in 2025 as issuers turn to ESG financing to drive demand and reduce costs for new issues.