MANILA, PHILIPPINES - Two new Asian currencies - Philippines Peso and New Taiwan Dollar - have recently been added to ADB's US$10 billion Asian Currency Note Programme (ACNP).
The ACNP serves as the first regional platform in Asia dedicated to issuances of bonds in local currencies. Under the scheme, ADB can issue Asian currency denominated bonds in their respective domestic markets generally under a unified legal and documentation framework, thus promoting the integration of the Asian bond market and attracting wider investor bases. Launched in September 2006, the ACNP supports the efforts of the ASEAN+3 Bond Market Initiatives (ABMI) to harmonize regulations in the region and to establish deeper and more liquid bond markets.
The addition of the Philippines Peso (PHP) and New Taiwan Dollar (NTD) expand the available currencies under the programme to five including Singapore Dollar (SGD), Hong Kong Dollar (HKD) and Malaysian Ringgit (MYR). ADB has issued bonds in Singapore and Hong Kong under the ACNP since its launch. The programme is structured to accommodate other markets in the region as and when the terms are approved by regulators. ADB is actively working with a number of Asian governments to potentially include more currencies in the programme.
"We would like to express our sincere appreciation to the respective governments in the region for their commitment to ensuring the success of this programme," says ADB Vice-President Bindu Lohani. "We firmly believe that the programme will contribute to Asia's own ever increasing funding needs, especially during the current financial crisis."
"We have issued both PHP bonds and NTD bonds in the past, but with both currencies joining the programme, it will allow us to tap the markets as and when market opportunities arise without the need to seek new approvals for each and every issue, thus enable us to achieve greater funding efficiency and volume which will in turn benefit our borrowers in the developing countries," says ADB Treasurer Mikio Kashiwagi.
In keeping with its mandate, ADB aims to contribute to the development of the bond markets of its developing member countries. ADB has undertaken market opening transactions in many Asian markets since 1970 when it was the first foreign issuer that issued Samurai bonds in Japan. Since then, ADB opened the markets of Australia, Korea, Taipei,China, India, Malaysia, Philippines, Thailand, and the People's Republic of China.