Asian foreign-currency sovereign bonds soar

Felipe Duque, A&O Shearman partner, commented: "Consistent with the fundraising trends that we have observed globally following the change in the U.S. administration, Asian government borrowers have gone to market early this year to secure external funding in anticipation of continued volatility and uncertainty. We believe this early activity heralds a busier year for debt capital markets in the Asia Pacific region compared to last year."

Felipe added: "Our involvement in all foreign currency bonds by Asian sovereigns so far in 2025 highlights our deep understanding of these transactions. Across our global network, we regularly advise on the most significant financing transactions and other matters for sovereigns, central banks, and state-owned enterprises, which gives us unique insights and puts us at the cutting edge of this market."

Republic of Indonesia

A&O Shearman advised its longstanding client the Republic of Indonesia on its U.S. SEC-registered offering of USD900 million 5.250% Bonds due 2030, EUR700m 3.875% Bonds due 2033, USD1.1 billion 5.600% Bonds due 2035, and EUR700m 4.125% Bonds due 2037. This was the first foreign-currency bond by an Asian sovereign in 2025.

Republic of the Philippines

For the first time, the Republic of the Philippines has issued a sustainability bond offering and signifies its return to EUR bond markets since April 2021.

A&O Shearman advised the underwriters on the U.S. SEC-registered offering by the Republic of the Philippines of EUR1bn 3.625% Global Bonds due 2032, USD1.25bn Global Bonds due 2035 and USD1bn 5.900% Global Bonds due 2050. The Republic intends to invest an amount equal to the net proceeds from the 2032 and the 2050 global bonds into projects that qualify as eligible expenditures under its Sustainable Finance Framework.

Ministry of Finance of Mongolia

A&O Shearman advised the initial purchasers on the Government of Mongolia's Rule 144/Reg S offering of USD500 6.625% Bonds due 2030 and the dealer managers on the Government's concurrent tender offer for its nearest-maturity bonds (due 2026) and bonds due 2028. Mongolia, which was recently upgraded by all three main international credit rating agencies, achieved exceptionally tight pricing for an emerging market issuer.

The A&O Shearman team on these transactions was led by partner Felipe Duque with support from Julie Song and Sean Cao. Giancarlo Sambalido co-led on the transaction by the Republic of Philippines.