EM Sovereign Debt Placements - March 2025

EM Placements in March: robust China, surprising Pakistan, and African dominance in international bonds

Local currency and international sovereign bond placement in Emerging Markets totaled USD 216 bln, heading 41% up compared to the previous month and rising 24% year-on-year. However, the growth is inexorably linked to the leap in China's bond issuance after an unusually weak February. As a new chapter of the trade war is opened between Beijing and Washington, sovereign bonds worth 135 bln USD auctioned last month are hardly an upper cap.

International sovereign bonds were only supplied by African issuers with an only USD placement made by Cote d`Ivoire. Placement levels are close to the year lows both in absolute terms and as a proportion of the total issues.

In Asia, India put the placements on hold due to the closure of the financial year. The second spot, following China, was surprisingly taken by Pakistan setting its monthly placement record (since the start of our observation period - 2019). At the aggregate volume level, Asia was the only region in March 2025 to show growth compared to February 2025.

In Africa, the marginal decline of sovereign debt placement activity was registered. Egypt was the only major regional economy to demonstrate a consistently positive placement dynamic. Interestingly, South Africa keeps its borrowing stream unchanged at USD 1.19 bln for the second month in a row.

In Latin America, last month was marked by a fall in issuance by a quarter both m/m and y/y. Argentina's placements remain at low levels, though crawling up in March. In Brazil, on the contrary, a minor m/m contraction comes against the background of generally robust borrowing.

In the Middle East, issuance activity in March was subdued. Saudi Arabia refrained from tapping the international bond market - a conduit widely used by the Kingdom. Turkey and Jordan, however, increased the placement volumes versus March 2024.

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