Foreign borrowers are increasingly tapping Asia-Pacific bond markets that were once considered niche, pushing issuance in Australian dollars, Hong Kong dollars and yuan to record levels. This year, Germany's Commerzbank, French utility Engie, Persil-owner Henkel, Singapore Airlines and the Portuguese government all sold bonds denominated in Australian dollars and China's onshore and offshore yuan for the first time. LSEG data show foreign issuer "kangaroo" bond sales in Australian dollars reached about A$60 billion ($42 billion) by late July, up roughly 40% from 2025, while Hong Kong dollar issuance also hit a record high. Goldman Sachs said Chinese onshore "panda" bonds and offshore "dim sum" bonds rose to around 160 billion yuan ($24 billion) and 350 billion yuan in the first half, both record highs and more than 60% above the same period last year, with half sold by international borrowers. Bankers said the shift reflects larger funding programmes, the need to diversify away from core borrowing currencies, and growing competition for capital as hyperscalers (largest cloud-computing companies) raise heavily in major bond markets. They also pointed to stronger regional demand from Asia's wealth growth, Australia's pension assets and, in China, policy efforts to internationalise the yuan. Even yen borrowing by foreign issuers has doubled this year, helped by Alphabet's record deal, and without that transaction the market would still be at a seven-year high. Bankers said smaller Asian markets cannot absorb unlimited borrowing, but the trend remains intact, with Brazil planning its first panda bond later this year and Kenya also considering the market.