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Local Currency Issues

ADB is committed to promoting domestic capital markets development in its developing members by issuing bonds on local markets and through other initiatives.

Benefits to investors include:
  • exposure to local currencies and interest rates through instruments of the highest credit quality
  • investment diversification opportunity for local investors
  • exposure to longer-dated investment instruments

ADB has a long history of innovation in this area. In 1970, it was the debut foreign issuer in the Japanese yen (or Samurai) market. Since then, ADB has been a regular issuer in Asian capital markets. ADB was also the first supranational issuer in the domestic capital markets of Australia, People's Republic of China, India, Korea, Malaysia, Philippines, Taipei,China, and Thailand.

As part of its developmental mandate, ADB contributes to the development of regional bond markets through local currency bond issuances. To promote capital market development in the Asia and Pacific region, ADB established in April 2006 a 15-year Malaysian ringgit (MYR) 3.8 billion Medium-Term Note Programme (MYRMTN Program) in Malaysia. ADB simultaneously launched the inaugural offering of MYR500 million notes under the MYRMTN Program.

In September 2006, ADB established its 30-year US$10 billion equivalent Asian Currency Note Programme (ACNP), and launched the inaugural offering of notes under the ACNP in the domestic capital markets of Singapore and Hong Kong, China. Total issuance under ACNP is SGD550 million and HKD2.5 billion. Up to now five local currencies has joined the ACNP: Singapore dollar, Hong Kong dollar, Malaysian ringgit, Philippine peso and New Taiwan dollar. ADB continues to engage other members to join the ACNP.

Besides bond issuances, ADB raised funds through cross-currency swaps to fund local currency needs.

List of Recent Local Currency Borrowings
As of 28 April 2009

Currency Issue Date Maturity Date Principal Amount Coupon % Reference
Philippine peso 24-May-07 25-May-12 PHP 5,000,000,000 5.230 0557-000
Hong Kong dollar 18-Jan-07 18-Jan-12 HK$ 1,500,000,000 4.000 0514-000
Singapore dollar 8-Feb-07 8-Feb-12 SGD 250,000,000 3.270 0519-000
Malaysian ringgit 8-Feb-07 8-Feb-17 MYR 500,000,000 4.000 0517-000
Hong Kong dollar 21-Sep-06 21-Sep-09 HK$ 1,000,000,000 4.280 0495-000
Singapore dollar 18-Sep-06 18-Sep-11 SGD 300,000,000 3.335 0494-000
Thai baht 18-Sep-06 18-Sep-11 THB 5,500,000,000 5.340 0493-000
Thai baht 18-Sep-06 18-Sep-16 THB 1,000,000,000 5.540 0493-001
Malaysian ringgit 25-Apr-06 24-Apr-11 MYR 500,000,000 4.265 0473-000
Philippine peso 09-Nov-05 10-Nov-10 PHP 2,500,000,000 0.000 0453-000
Renminbi 14-Oct-05 14-Oct-15 RMB 1,000,000,000 3.340 0445-000
Thai baht 24-May-05 24-May-10 THB 4,000,000,000 3.870 0414-000
Malaysian ringgit 10-Nov-04 10-Nov-09 MYR 400,000,000 3.940 0399-000
Indian rupee 27-Feb-04 27-Feb-14 INR 5,000,000,000 5.400 0385-000
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