Broad-based growth across financial institutions, corporates, and statutory boards drove record issuance amid lower rates and tighter credit spreads.

The Monetary Authority of Singapore reported that the country's corporate debt market saw new issuance volumes rise 34% year-on-year in 2024 to S$308 billion, driven by lower interest rates and tight credit spreads, signaling robust demand for funding across financial institutions, corporates, and statutory boards. This marks the strongest single-year performance in the market's history, with total outstanding size expanding 9% to S$617 billion at end-2024 (MAS, 2025). The broader Singapore dollar bond market has grown from S$320 billion a decade ago to S$867 billion as of end-March 2025, representing a compound annual growth rate of 10.5% (UOBAM, 2025).

Record Issuance Volumes in 2024

New issuance volumes rose 34% year-on-year to S$308 billion in 2024, according to the MAS (2025). The outstanding size of the corporate debt market increased 9% to S$617 billion at end-2024 (MAS, 2025). The total stock of SGD bonds reached S$867 billion as of end-March 2025, up from S$320 billion a decade earlier, an average annual growth rate of 10.5% (UOBAM, 2025). This expansion reflects not only higher issuance activity but also the deepening of the domestic bond market's investor base and liquidity profile.

Issuance Volume (S$ billion) (S$ billion)Source: Orionmano Industries

Broad-Based Growth and Key Drivers

Growth in the SGD market was broad-based across financial institutions, corporates, and statutory boards, supported by lower rates and tighter credit spreads (MAS, 2025). In the non-SGD market, financial institutions led issuance volumes, fueled by the need to finance asset book growth (MAS, 2025). There were 126 SGD-denominated corporate bond issuances in 2024, the highest in a decade, with 60 in the first half of 2025 alone, suggesting that the momentum is set to stay elevated (UOBAM, 2025). Falling government bond yields have made corporate bonds more attractive to yield-seeking investors, and corporates have responded by increasing supply when funding costs are lower (UOBAM, 2025).

Foreign issuers also tapped Singapore's market with notable frequency. Pfizer, which has an existing plant and factory in Singapore, raised funds through the corporate bond market to finance business expansion (MAS, 2024). Chinese offshore issuances, including CNH-denominated bonds from Guangzhou Development District Holding Group Limited, Xi'an Kingfar International, and AVIC International Leasing Co., Ltd., raised more than S$700 million in total (MAS, 2024). The proportion of corporate issuers in the non-SGD market increased by 31 percentage points in 2023, a trend that continued into 2024 as global corporates with regional operations in Singapore sought funding for operational and business expansion (MAS, 2024).

Digital Bonds and MAS Initiatives

Singapore's digital corporate bond issuance reached approximately USD 2.5 billion as of end-2024, from a diverse range of issuers including corporations, financial institutions, and special purpose vehicles (MAS, 2025). While digital bond adoption remains at an early stage relative to traditional bond markets, the technology has potential to enhance efficiency and lower costs (MAS, 2025). To promote mainstream adoption, MAS launched the Global-Asia Digital Bond Grant Scheme (G-ADBGS) in 2025, offering up to SGD 450,000 per issuer to defray the incremental costs of issuing digital bonds (MAS, 2025). The scheme targets both first-time and repeat issuers, aiming to build critical mass in the digital bond ecosystem.

Sustainable Finance and Market Resilience

The sustainable finance segment has grown in parallel with the broader market. Green, social, sustainable, and sustainability-linked (GSSSL) loans originated from Singapore in 2024 reached a new high of over S$48 billion (MAS, 2025). Singapore is ASEAN's largest market for GSSSL bonds and loans, and the momentum for sustainable finance in Southeast Asia remains positive despite global headwinds in climate action (MAS, 2025). A notable landmark transaction was CapitaLand Investment's issuance of the first sustainability-linked panda bond by a Singapore company, raising RMB 1 billion from institutional investors (MAS, 2024). The bond garnered strong demand, reflecting investor appetite for sustainability-linked instruments in the offshore renminbi market.

The banking system underpinning these markets remains robust. MAS stress tests applying a severe scenario—incorporating a sharp tightening in global financial conditions, heightened market volatility, a trade shock, and persistent policy uncertainty—found that Singapore banks have strong capital buffers and healthy liquidity profiles, and should weather a global recession and tightened financial conditions for an extended period (MAS, 2025). Corporates and households are generally resilient, with healthy debt servicing capacities and good financial buffers, though the MAS has noted that certain segments remain more vulnerable and should exercise vigilance (MAS, 2025).

With the newly launched digital bond grant scheme and sustained momentum in sustainable finance, Singapore's corporate debt market is poised for further expansion, underpinned by a resilient banking system and growing global issuer appetite. The combination of a deep government bond benchmark curve, a AAA sovereign rating, and a policy environment actively fostering innovation positions Singapore to continue serving Asia's financing needs for the foreseeable future.