South Korean issuers dominated issuance activity in the Asia G3 bond market, excluding Australasia and Japan, in the first four months of 2026, navigating a volatile market environment amid the conflict in the Middle East. This comes as the issuance volume fell 10.6% to US$97.41 billion during the period, compared with US$108.90 billion in January-April 2025.

Figures provided by LSEG, however, show that issuances have recovered in April with a volume of US$18.91 billion, against US$13.79 billion in March. The G3 bond market in the region actually started on a strong note in 2026 as it maintained the issuance momentum in 2025, with the January volume amounting to US$43.34 billion, compared with US$39.84 billion in January 2025.

Issuances from South Korea surged 39.5% to US$36.80 billion in the first four months of 2026 from US$26.37 billion in the comparable period a year ago. Some of the country’s frequent issuers maintained the deal flow, providing investors with paper to deploy their capital even as activity tapered off after the United States and Israel launched coordinated military strikes against Iran on February 28.

Korea National Oil Corporation printed a three-tranche offering on March 24 totalling US$1.2 billion, which garnered US$4.5 billion in demand. LG Energy Solution followed suit, pricing on March 25 a four-tranche transaction amounting to US$1.6 billion, including a 10-year green bond of US$500 million. The policy bank, Korea Development Bank, accessed the euro bond market on March 31 with a €1 billion ( US$1.8 billion ) deal – the first euro-denominated public offering by an Asian SSA ( sovereign, supranational and agency ) issuer since the conflict broke out.

Also tapping the market on March 31 were Korea Mine Rehabilitation and Mineral Resources Corporation, which raised US$500 million for five years, in a deal that saw an order book of US$4.9 billion from 230 accounts. Hyundai Capital America priced on the same day a three-tranche offering totalling US$2 billion.

Korea’s major banks followed suit with Shinhan Bank printing on April 3 US$600 million, equally split between a three-year floating rate note and a five-year fixed rate note, amounting to US$300 million each. On April 9, KEB Hana Bank raised €600 million from a five-year green covered bond, while another policy bank, Export-Import Bank of Korea, priced on April 16 a €750 million sustainability bond for five years.

Indonesia also surges

Apart from South Korea, Indonesia also recorded higher in-country issuance in the first four months of 2026, at US$10.30 billion, more than twice the US$4.57 billion in the comparable period a year ago. The issuances were led by the sovereign, which priced on January 13 a three-tranche offering of US$2.7 billion, including a US$500 million 30-year bond. Then on February 25, it accessed the euro bond market with another multi-tranche transaction totalling €2.7 billion. Proceeds from both deals were used to support the state budget.

Also boosting Indonesia’s presence in the G3 bond market so far this year are two state-owned enterprises. Bank Mandiri raised US$750 million for five years in end-March, while PT Perusahaan Listrik Negara printed a dual-tranche offering of US$500 million for five years and US$1 billion for 10 years.

Other markets exhibited lower issuance volume in the first four months of 2026, LSEG data show, with that of China falling to US$20.51 billion ( down 31.4% ), Hong Kong US$7.94 billion ( down 35.7% ), the Philippines US$3.04 billion ( down 37.8% ), Singapore US$2.52 billion ( down 69.8% ), India US$2.20 billion ( down 35% ) and Malaysia US$1.85 billion ( down 65.1% ).

In the meantime, local currency issuances also picked up during the first four months of 2026, with those of the Hong Kong dollar deal volume surging 57.3% to HK$172.04 billion from HK$109.40 billion in the comparable period the year before, according to LSEG. The issuances were led by Airport Authority Hong Kong, which broke new ground when it priced on April 28 the largest Hong Kong dollar bond offering amounting to HK$19 billion ( US$2.42 billion ) in three tranches.

The deal came on the heels of MTR Corporation’s inaugural Hong Kong dollar public bond transaction of over HK$18.8 billion, also in three tranches. The corporate green bond offering enhances MTR’s funding flexibility and further diversifies its financing sources to support new railway projects, as well as more green initiatives. Earlier in January, MTR accessed the Australian dollar bond market for the first time for a A$2 billion ( US$1.44 billion ) green bond – a deal that secured the largest-ever Australian dollar corporate order book at A$12.5 billion.