A story of resilience in North Asia ( ex-Japan ) emerges from The Asset’s review of the 2025 Triple A Sustainable Finance Awards submissions. The region’s capital markets deal volumes, including sustainable finance activity, experienced a temporary dip amid the uncertainty following the US “Liberation Day” tariff announcement in early April, which introduced a 10% baseline tariff on imports from nearly all countries, alongside higher reciprocal rates for certain trading partners.

However, the market recovered quickly and maintained solid momentum throughout the year. Credit-strong issuers and arrangers continued to access capital effectively, complete key transactions and secure important funding for important sustainability projects. This swift rebound and ongoing activity reflect the region’s growing maturity in sustainable finance and its strong dedication to supporting green and transition initiatives, even against a challenging backdrop of macroeconomic and geopolitical pressures.

Attractive funding avenues in China

The resilience of China’s sustainable finance market in 2025 was defined not by sheer volume alone, but by structural optimization and groundbreaking re-openings. While certain segments remained constrained, a clear trend emerged: credit-strong issuers and arrangers strategically navigated the landscape, prioritizing funding cost efficiency, tenor extension and access to dedicated thematic capital. This was showcased by landmark transactions that underscored the maturation of the offshore yuan market, the cautious reopening of select high-yield sectors and the dominance of sustainability-linked capital raising for global expansion.

The offshore yuan bond market evolved from a niche alternative into a core strategic funding channel for several issuers. Milestone issuances by State Grid Corporation of China of 10 billion yuan ( US$1.44 billion ) and Tencent Holdings of nine billion yuan demonstrated unprecedented scale and tenor, with the latter printing the market’s first 30-year corporate bond from a mainland China corporate issuer. This development, coupled with Bank of Communications ( Hong Kong ) pioneering a digitally-native bond format, signals deepening liquidity in the Chinese bond market. Concurrently, the syndicated loan market mirrored this currency diversification, as seen in J&T Global Express’s 10-billion-yuan facility, the largest cross-border yuan loan of the year and Alibaba’s multi-currency revolving credit facility.

Also, in the debt capital market, watershed moments included Seazen Group’s US$300 million bond, marking the first offshore issuance by a private Chinese property developer in three years, and China Hongqiao Group’s US$330 million note, which reopened the Asian US dollar high-yield bond market for the year.

Parallel to this offshore momentum, the onshore panda bond market continued its trajectory as a vital avenue for international issuers to tap renminbi liquidity for sustainable projects. The Asian Infrastructure Investment Bank’s two-billion-yuan sustainability development panda bond stood out, achieving the highest oversubscription in the bank’s panda bond programme and attracting a record number of investors. This transaction reinforced the market’s role in deepening China’s onshore investor base and solidifying the panda bond as a core channel for global institutions to fund sustainable development.

Beyond currency trends, the past year witnessed critical market re-openings and thematic dominance. The equity capital markets were anchored by transformative raises for green technology champions, with Contemporary Amperex Technology Company Limited ( CATL )’s US$5.2 billion A-to-H initial public offering and BYD Company’s US$5.6 billion primary placement, the largest of their kind globally, directly funding international growth and research and development in sustainable batteries.

Mainland China related merger and acquisiton activity, while selective, reflected strategic consolidation and ecosystem building within the sustainable economy. The US$31.2 billion merger of Guotai Junan Securities and Haitong Securities created an industry behemoth to better serve the green financing ecosystem, while Haier Group’s US$1.8 billion acquisition of Autohome accelerated its integrated automotive service platform. These deals, alongside strategic moves in telecom and biotech financing, illustrate a market where capital is being deployed not merely for growth, but to build integrated, sustainable industrial platforms for the future.

Hong Kong cements status as finance hub

Hong Kong’s stature as a leading international sustainable finance hub was decisively reinforced in 2025, not merely by market volume but through landmark innovations and deep market diversification that set new regional benchmarks. The city’s market demonstrated remarkable sophistication, channelling capital into both public infrastructure projects and pioneering sector-specific transitions, all while accelerating the integration of digital finance with sustainability goals.

The year was defined by several record-setting, thematic transactions that underscored the market’s depth and investor appetite. The Hong Kong government’s HK$10 billion ( US$1.28 billion )-equivalent multi-currency digital green bond stands out, achieving the world’s largest digital bond issuance while innovatively integrating e-CNY and e-HKD in settlement, a global first. Similarly, the MTR Corporation’s HK$30 billion syndicated green term loan emerged as the largest of its kind for a Hong Kong corporate, attracting a vast, global syndicate of 57 banks. These deals highlight Hong Kong’s unique role in financing green public infrastructure and advancing financial market digitization.

Beyond sovereign and quasi-sovereign benchmarks, product innovation proliferated across the capital structure and into new sectors. The loan market saw groundbreaking structures, such as Chinachem Group’s debut HK$8 billion facility, the first in Asia to combine green, social and sustainability-linked components. Meanwhile, Bravo Transport Service’s HK$2.80 billion financing blended sustainability-linked and transition finance to support Hong Kong’s first hydrogen bus fleet, setting a template for hard-to-abate sectors.

In the wonton bond market, the World Bank’s inaugural HK$7 billion sustainable development bond deepened the local currency curve, while Swire Properties’ 3.5 billion offshore yuan green bond evidenced strong demand for long-tenor offshore yuan debt from Hong Kong issuers.

Sustainable financing activity in the city over the past year reflects a market maturing beyond simple green labelling towards nuanced, impact-driven financing. From Kingboard’s HK$8 billion sustainability-linked loan targeting manufacturing emissions to Aeon Credit Service’s social-focused sustainability-linked loan and Wing Lee Development’s niche green loan for noise mitigation, Hong Kong’s 2025 deal flow illustrates a broad-based, detailed integration of environmental, social and governance key performance indicators across real estate, shipping, non-bank financial institutions ( NBFIs ) and construction industries.

This comprehensive ecosystem of sustainable finance, supporting both global institutions and local corporates in their transitions, solidifies Hong Kong’s pivotal role in allocating capital for regional sustainability objectives.

South Korean sustainable bond activity remains robust

South Korea’s sustainable finance market in 2025 distinguished itself through innovation and strategic thematic specialization, moving decisively beyond conventional bonds to fund the nation’s core industrial transition and social priorities. Unlike a market driven by volume alone, Korean issuers demonstrated leadership by creating first-of-their-kind instruments in high-impact sectors, channelling capital into nuclear energy, maritime economy and critical small and medium-sized enterprise ( SME ) financing.

This pioneering spirit was most evident in groundbreaking bond issuances that defined new asset classes. Korea Hydro & Nuclear Power Company issued the Asia-Pacific region’s first international green nuclear bond, a landmark transaction validating nuclear power’s role in the energy transition. Concurrently, Korea Ocean Business Corporation’s inaugural US$300 million blue bond showcased the focused application of sustainable finance to the marine economy. Similarly, Shinhan Bank pioneered the first transition bond in Japan’s samurai market, highlighting a cross-border strategy to fund high-emission sector decarbonization.

The market’s maturity was further reflected in the sophisticated structuring of social bonds and sustainability-linked loans targeting specific economic pillars. Financial institutions led the way in deploying capital for inclusive growth, with the Industrial Bank of Korea’s US$1 billion social bond dedicated to SME support and NongHyup Bank’s US$600 million social notes specifically aimed at agriculture and rural communities. In the loan market, sustainability-linked loan structures were tailored to sectoral nuances, from HMM’s shipping facility linked to emissions efficiency to KB Kookmin Card’s consumer finance sustainability-linked loan, which innovatively tied terms to reducing plastic use and supporting small business proprietors.

By leveraging the strong credit standing of its flagship corporations and financial institutions, South Korea has successfully carved out niches in blue and social finance. This trend underscores a strategic, state-aligned approach where sustainable debt instruments are deployed as precise tools to advance national industrial policy, energy security and social cohesion objectives, appealing to a global investor base seeking high-quality, thematic exposure.

Taiwan leverages on AI investor appetite

Taiwan’s capital markets in 2025 were propelled by its world-leading technology sector, with issuers leveraging soaring equity valuations and robust global investor appetite for artificial intelligence ( AI ) exposure to execute landmark, structure-driven financings. This activity extended beyond traditional equity raises into innovative debt formats and strategic overseas acquisitions, showcasing the market’s sophistication and its pivotal role in funding the global digital and green transitions.

The equity-linked space was exceptionally active, dominated by record-setting transactions from semiconductor and tech hardware leaders. Wistron Corporation made history with a US$1.2 billion convertible bond, the largest ever from Taiwan executed with a negative yield, underscoring immense investor confidence. Similarly, WT Microelectronics’ concurrent global depositary receipt and euro convertible bond offering was expertly structured to capture equity and equity-linked demand, funding its expansion in AI-driven semiconductor distribution. These deals highlight how Taiwanese tech firms are optimizing their capital structures to fuel growth in core strategic areas.

Simultaneously, the bond market witnessed a notable push towards currency and investor base diversification. Hon Hai Precision Industry broke new ground with its €650 million ( US$770.19 million ) senior notes, marking the first-ever public euro bond from a Taiwanese issuer and achieving significant pricing tightness. In the NBFI space, Fubon Life’s inaugural US$650 million offshore Tier 2 issuance demonstrated the financial sector’s strategy to bolster capital and seek funding diversity. This trend towards novel liability management was mirrored in the loan market, where Dong Fang Offshore’s NT$4.6 billion ( US$145.5 million ) facility innovatively financed multiple wind farm vessels under a single package, directly supporting Taiwan’s offshore wind energy ambitions.

This ecosystem of financing culminated in strategic, outward-looking M&A. Lotus Pharmaceutical’s US$2 billion acquisition of Alvogen US stood as the largest-ever Taiwan-US cross-border deal in its sector, funded through a sophisticated financing package. It exemplifies how Taiwanese companies are deploying capital to build global scale and capabilities. Collectively, these transactions paint a picture of a market that is not merely riding a tech boom, but is deliberately and innovatively accessing global capital to solidify its industrial leadership and execute long-term, transformative growth strategies.

These were just several of the key trends observed by the board of editors at The Asset as part of our Triple A Sustainable Finance Awards 2026.

For the complete list of Best Banks/Advisers in North Asia, please click here.

For the complete list of Best Deals in North Asia, please click here.

For more information about the awards gala schedule for March 31 2026, please contact us at celebrate@theasset.com