Men walk, with the city skyline in the background, in Jakarta, Indonesia, Feb 12, 2024. (PHOTO / AP)

MANILA - The sustainable bond market in East Asian countries expanded 29.3 percent in 2023, outpacing the 21 percent growth of the global and euro-area sustainable bond markets, according to an Asian Development Bank (ADB) report released Thursday.

ADB Chief Economist Albert Park said ASEAN sustainable bond issuance made up a higher share of local currency financing and long-term financing in 2023, driven by public sector participation

The latest edition of the Asia Bond Monitor said that sustainable bonds in the Association of Southeast Asian Nations (ASEAN) members, China, Japan, and South Korea, collectively as ASEAN+3, reached $798.7 billion by the end of 2023, accounting for around 20 percent of global sustainable bonds.

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By the end of 2023, the global sustainable bond markets had reached 4 trillion dollars, bringing environmental and social benefits to the countries through sustainable bonds financed projects and programs.

ASEAN sustainable bond issuance made up a higher share of local currency financing and long-term financing in 2023, driven by public sector participation, ADB Chief Economist Albert Park said.

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The report also said financial conditions in emerging East Asia improved marginally between Dec 1 and Feb 29, as the US Federal Reserve was expected to ease its monetary stance. Inflation continued to moderate, and most economies posted sound economic growth in the region.