EM Placements in May: inward orientation

Total sovereign bond issuance across emerging markets reached $247.7 billion in May 2025, rising 17.9% month-on-month (m/m) and 15.8% year-on-year (y/y). Regional dynamics were heterogeneous, with Latin America contracting while Asia, Africa, and the Middle East expanded.

Latin America declined 19.7% m/m to $36.6 billion, though it grew 13.9% y/y. Brazil’s issuance fell 45.4% m/m (to $13.7 billion) amid heightened fiscal uncertainty. Mexico’s resilience (+4.9% m/m, $11.5 billion) reflected its trade deal with the U.S., which reduced auto and metals tariffs. Colombia’s sharp contraction (-77.5% m/m) aligned with the absence Eurobond reliance after April’s surge. Argentina issued $7.6 billion, the highest amount since March 2024.

Asia (ex-Japan) surged 26.4% m/m to $189.5 billion (+24.6% y/y), led by China’s $150.2 billion issuance (+31.6% m/m). This acceleration was fueled by China’s economic stimulus measures. India ($19.9 billion, +38.1% m/m) ($3.8 billion, +33.0% m/m) benefited from post-fiscal-year market re-entry. Pakistan’s rebound (+86.2% m/m) followed April’s contraction as the conflict with India turned to the de-escalation path.

Africa rebounded 56.2% m/m to $9.0 billion, driven by Egypt’s $2.2 billion issuance (+292.6% y/y). Egypt's performance was underpinned by the new IMF tranche, debt reduction plans announcement and the record- high foreign reserves.

Middle East expanded 41.5% m/m to $12.7 billion despite a 38.9% y/y decline. Turkey’s $5.1 billion issuance (+11.7% m/m) was marked by the high share of Eurobonds, which comprised 38.9% of its issuance. Saudi Arabia’s absence from international markets persisted due to fiscal consolidation efforts.

Eurobond issuance remained subdued at $2.0 billion, with Turkey as an only issuer. This signaled a EM's pivot toward domestic placements.

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