APAC Convertible Market: 2025 Record Deal Flow Signals Broadening Adoption

As 2025 concluded, the Asia-Pacific (APAC) convertible securities market delivered standout performance defined not by sheer volume but by its expanding reach. Issuers brought 54 new deals to market, up 26% from 43 in 2024, raising $23.7 billion (USD equivalent). While total proceeds moderated from $27.9 billion the prior year, the jump in transaction count reflects a maturing market where a wider array of companies—from established insurers to innovative technology firms—turned to convertibles for flexible, cost-efficient financing. 

In a year marked by sustained investor demand and favorable market conditions, APAC issuers from diverse sectors leveraged convertibles to fund growth initiatives, refinance maturities, and navigate economic uncertainties. High-growth areas like consumer discretionary, financials and technology dominated, reflecting broader trends in AI, digital transformation, and regional economic recovery. Globally, the asset class posted a landmark year with roughly $167 billion in issuance, and APAC played a meaningful role, contributing diversity and high-quality names that captured investor attention. 

Performance Snapshot: Breadth Over Scale 

APAC's convertible market showed vigorous activity throughout 2025, with issuers increasingly adopting zero- and low-coupon structures to secure cost-effective capital without immediate interest burdens. This trend aligned with global patterns, where zero-coupon deals were prevalent among high-growth companies, allowing them to preserve cash flow while offering investors equity participation. 

Average deal size contracted to approximately $439 million from $650 million in 2024, pointing to broader participation beyond mega-issuers. Yet the market retained its capacity for scale, with nine of the top 10 deals surpassing $1 billion (the tenth at $988 million). This combination of volume and selectivity highlighted convertibles’ versatility as a financing tool across the issuer spectrum. 

2025 Sector Dynamics  

Leadership in key sectors highlighted the distinctive engines behind APAC’s growth in convertibles issuance. Consumer Discretionary topped the charts with gross proceeds of $4.92 billion across eight deals, driven by automotive, jewelry, and battery-related names. Financials followed with $4.30 billion from just four transactions, underscoring the appeal of the structure to major insurers. Information Technology contributed $3.54 billion (seven deals), with Taiwanese issuers particularly active, while Industrials (nine deals, $2.63 billion) and Real Estate (eight deals, $2.17 billion) added meaningful sector diversity. 

APAC Sector Breakdown  

 ^{Source: Numerix}

Standout Transactions 

The year’s most significant transactions captured the market’s strength in large, high-dollar deals. The top three—all zero-coupon structures from Hong Kong-listed issuers—stood out for their size and quality: 

• China Pacific Insurance Group (2601 HK) issued the largest APAC convertible of the year at $2 billion in September. This landmark deal reflected strong investor appetite for leading Chinese financial institutions seeking efficient growth capital. 

• Alibaba Group Holdings / Alibaba Health (241 HK) raised $1.55 billion in July, capitalizing on momentum in health technology and consumer staples amid ongoing digital economy expansion. 

• Ping An Insurance Group (2318 HK) followed closely with $1.5 billion in June, further demonstrating the financial sector’s leadership and the appeal of zero-coupon structures for high-quality credits. 

A snapshot of the top 10 new issues by size in 2025 illustrates this strength, with APAC issuers raising billions through strategic deals. Below is a breakdown of these landmark transactions: 

APAC: Top 10 Deals in 2025 

^{Source: Numerix}

These top deals, totaling a significant $12.7 billion, exemplify the market's focus on large-scale, investor-friendly terms. Five of the top 10 carried zero coupons, mirroring a global trend where high-growth or high-conviction issuers minimized cash interest costs in exchange for equity upside. Nine reached or exceeded $1 billion, reflecting robust institutional demand for large, liquid offerings. Notable credits spanned Hong Kong-listed Chinese giants, Taiwanese technology leaders, Japanese automakers, and Korean industrials—illustrating geographic and sector diversity. 

Overall, APAC's 2025 performance reflected resilience in the face of macroeconomic pressures such as U.S. tariff policies, proving convertibles' value in providing balance sheet flexibility and attracting sophisticated investors seeking solid returns. 

Outlook: APAC Poised to Accelerate in 2026 

Early signals for the coming year are encouraging. Numerix data (as of this blog’s publishing date) shows an impressive 22 new APAC deals totaling $15.2 billion have already been announced for 2026, suggesting the region is poised to build on 2025’s foundation. Globally, projections point to another strong year as issuers confront maturity walls and seek flexible capital for M&A and CapEx. APAC’s share of activity appears set to expand, supported by deepening investor sophistication and continued innovation in structure and documentation. 

Issuers will likely confront higher refinancing costs, making convertibles an attractive option to extend maturities while limiting cash interest. In APAC, this could accelerate adoption among high-growth sectors like AI, renewables, and healthcare, where zero- and low-coupon structures persist. Investor demand remains high, underpinned by inflows into dedicated strategies and strong equity markets. 

Challenges such as inflation or central bank policy shifts exist, but the market's resilience suggests opportunities outweigh risks. As issuers and investors alike embrace this evolution, APAC convertibles are set to play a pivotal role in funding innovation and growth. 

Looking further into 2026, sustained demand and structural trends point to continued expansion, highlighting convertibles' enduring value in a dynamic environment. 

Global Convertibles Report Download 

For a detailed look at the global convertibles market, including overall 2025 performance and a glimpse of the year ahead, download our Q4  Convertibles Market report.