UOB banks on Asean growth story

Edmund Leong, head of Group Investment Banking at UOB, talks exclusively to FinanceAsia about where the bank sees scope for growth in Asean amid the region’s robust drivers of issuance and strong thematics.

Mar 18, 2025 - 21:01

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Edmund Leong, head of Group Investment Banking at UOB, talks exclusively to FinanceAsia about where the bank sees scope for growth in Asean amid the region’s robust drivers of issuance and strong thematics.

March 18, 2025

Riding on the region’s growth momentum, Asean offers increasingly appealing opportunities for capital raising and advisory services that UOB is focused on tapping into.

“We see huge opportunities in Asean,” said Leong, pointing to the vast scope for cross-border trade, which UOB estimates is worth more than $2 trillion. “This will also drive a lot of the activity in FDI flows that will create CapEx and M&A opportunities.”

The bank is well positioned to capitalise on these. Its global network counts over 500 offices in Southeast Asia, Greater China and around the world, catering to large, medium and small enterprises from multinationals and sovereign wealth funds, to financial sponsors and the SME sector.

“We focus on the thematics and the solutions that drive economic activity and cross-border trade in the region,” added Leong.

A promising issuance outlook

Within Asean, UOB sees two key drivers for issuance volume: refinancing and growth capital.

The potential for refinancing cannot be underestimated. According to Leong, more than $300 billion in bonds will be due for refinancing in Asia ex-Japan over the next 12 months. And last year's issuance volume could only satisfy half of that.

As a result, he explained, with interest rates in the US staying higher for longer, UOB envisages Asean local currency markets to be able to satisfy those needs.

Meanwhile, growth capital will continue to be an important source of issuance. “We see frequent issuers tap the local bond markets. Also, with domestic funds and high net worth liquidity chasing higher returns and yield, equity capital markets will rebound in terms of IPOs,” said Leong.

Thematics to drive Asean’s potential

Several supportive thematics also underscore the region’s potential for capital raising and advisory services.

Firstly, the supply chain shift – both in terms of China+1 as well as Western businesses entering Asean – will fuel a lot of CapEx needs and financing across sectors such as high-end electronics in Vietnam and Malaysia.

Auto production is another growth story, especially in Thailand and Malaysia, along with the electric vehicle supply chain, including battery resources in Indonesia.

Data centres represent another sector where Leong sees significant opportunity. This in turn drives manufacturing of artificial intelligence-related equipment, plus the need for power, and in particular, renewables infrastructure.

At the same time, domestic consumption continues to be strong within Asean, including high circular growth sectors like healthcare, education and logistics.

A differentiated set of solutions

To anchor UOB’s Asean vision is what Leong describes as a well-balanced and counter-cyclical investment banking platform that can withstand headwinds from volatility, plus benefit from the tailwinds of strong public markets. “Our strengths have always been focusing on client needs and being less transactional.”

This approach is rooted in three core strategies: connectivity, customised solutions and sustainability.

For example, connectivity stems from UOB’s offering as the One Bank for ASEAN. “We have always been able to offer a broad range of investment banking services to our client base who are active in this region,” Leong said.

The bank is able to deliver these by bringing together teams that can provide customised multi-product capital markets and advisory solutions. “This has been critical for us to win and secure repeat mandates from clients,” he explained.

To complement these dynamics, UOB has consistently arranged $40 billion to $50 billion in sustainability financing across the region every year. Further, added Leong, UOB was the number one bookrunner and mandated lead arranger in 2024 for green loans in Asia ex-Japan.

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