Euro Bond Issuance Surges as Asia-Pacific Borrowers Diversify Away From U.S. Dollar
According to the Economic Desk of Webangah News Agency, euro bond sales by companies and governments in 2025 have jumped 75% to €86.4 billion ($100.7 billion).
While U.S. dollar deals still account for the majority of financing, with dollar borrowing by Asian issuers up 29% this year, its market share is shrinking, suggesting a gradual erosion of U.S. dominance in finance.
Daniel Kim, Co-Head of Asia-Pacific Debt Capital Markets at HSBC, stated that diversification away from the U.S. dollar is a key driver. The rise in euro bond issuance this year stems from a confluence of strategic motivations beyond routine refinancing, he added.
President Donald Trump’s trade policies and pressure on the Federal Reserve to cut interest rates despite inflation worries have undermined investor confidence in the dollar’s supremacy, prompting a shift to euro-denominated assets. Asian borrowers have followed suit, increasing euro bond issuance to meet demand for diversification, while the dollar has weakened 11% against the euro.
The euro’s borrowing boom is also fueled by lower financing costs, with some Asian borrowers finding it cheaper to raise funds in euros than in dollars or domestic currencies. Data compiled by Bloomberg shows the premium investors pay to swap euros into dollars is at a five-year low of 3.1 basis points.
Martin Schulz, senior economist at Fujitsu Limited in Japan, said the increasing appeal of the euro for Asian market participants in debt financing and investment signals a normalization after the dollar’s boom. “We have a more multipolar world,” he stated.
Notable deals in Europe this year include China’s €4 billion bond sale, which drew over €100 billion in bids, and NTT Japan’s €5.5 billion offering, the largest corporate euro bond issuance from Asia in 2025.
Bloomberg reports that Europe’s attractiveness as a funding destination is expected to continue into next year. Owen Gallimore, Head of Asia-Pacific Credit Analysis at Deutsche Bank, forecasts that euro issuance by Asian borrowers will rise to $125 billion in 2026, representing over 20% growth.
