Covered bond issuance in the Asia Pacific region may increase in 2025 following a rebound in the fourth quarter of 2024, Fitch Ratings said in a Wednesday release.

The resurgence during the quarter, reaching about $4.5 billion, was due to issuers raising funds in several currencies, the rating agency said.

Annual issuance volume nearly halved last year compared to 2023, but an expected doubling in maturities will likely drive higher issuance demand.

The region's issuance capacity remains robust, with issuers from Australia, New Zealand, Singapore, and Korea maintaining enough room to collateralize additional covered bonds within a regulatory asset limit, Fitch said.