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ADB announces first cross-border bond under ASEAN+3 bond framework
By Wendy Van Sickle
Columbus, Ohio, Sept. 28 – The Asian Development Bank said it welcomed the Thai baht bond issued by Japan’s Mizuho Bank on Monday.
The bond is the first issue under the ASEAN+3 Multi-Currency Bond Issuance Framework targeting greater cross-border bond sales in the region, Asian Development Bank said in a Monday press release.
Mizuho Bank’s 3 billion baht bond will mature in 2018. Mizuho will use the proceeds to finance its banking operations in Thailand.
“We expect this bond to herald more such issuance in the ASEAN+3 region,” Noritaka Akamatsu, senior adviser at the development bank, said in the release. “Opening markets to a wider variety of issuers and investors ultimately makes economies and markets stronger and more stable.”
The framework, part of the ASEAN+3 Bond Market Forum, has standardized issuance and investment processes across the region. It is initially being used in six markets: Hong Kong, China, Japan, Malaysia, the Philippines, Singapore and Thailand, and is expected to expand to the rest of the region.
ASEAN+3 includes the 10 countries of the Association of Southeast Asian Nations and China, South Korea and Japan.
“Easier local currency financing through the framework reduces the foreign exchange risks that led to the 1997-1998 Asian financial crisis but is also important as increasingly complex supply chains mean companies often have operations in a variety of countries,” the release states.
Based in Manila, Asian Development Bank is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth and regional integration.
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