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Green infrastructure becomes priority for Asian governments

The pressing need to build climate resilient infrastructure, and the potential boost to economic growth from such an endeavour has made green infrastructure a priority for many Asian governments. Rong Ren Goh, Portfolio Manager, Eastspring Investments expects the Asian bond market to play a key role in helping to finance these investments, which will in turn create more diverse opportunities for bond investors.

“There is an opportunity for investors to do well while doing good. The cost of debt between the best and worse rated ESG bonds in Asia is 26 basis points. The gap in Europe is 53 basis points, suggesting that the yield differential in Asia could widen in the future, making investments in Asia’s sustainable bond market a potentially rewarding venture for early investors”, says Goh in a recent market insight.

Read more on www.eastspring.com/lu