ADB is committed to helping its developing members develop their domestic capital markets by issuing local currency bonds and through other initiatives such as asset swaps, sound structuring and pricing of both sovereign and non-sovereign projects and through policy dialogue.
ADB has a long history of innovation in this area. In 1970, it was the first issuer of Samurai bonds in the Japanese yen market. ADB was also the first foreign issuer in the domestic capital markets of the People's Republic of China*, India, Korea, Malaysia, Philippines, Taipei,China, and Thailand.
In line with its keen support to the development of regional bond markets and the ASEAN+3 Bond Market Initiative, ADB has established a US$10 billion equivalent Asian Currency Note Program (ACNP) . The ACNP is dedicated to note issuances in regional currencies and is a significant milestone for Asian capital market development. To date, five regional currencies have been approved for inclusion under the ACNP: Hong Kong dollar, Malaysian ringgit, Philippine peso, Singapore dollar, and NT dollar. ADB has also established a MYR3.8 billion Medium-Term Note Program in Malaysia.
In 2013, ADB issued a Singapore dollar-denominated bond under ACNP amounting to S$500 million at 1.027% due 2018. Besides local currency bond issuances, ADB also raises funds through cross-currency swaps to fund local currency needs of its sovereign and non-sovereign projects.
Benefits to investors
- 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
Outstanding local currency borrowings (as of 6 March 2015)
|Currency||Issue Date||Maturity Date||Principal||Amount||Coupon %|
|Georgian lari||19 February 2015||15 February 2018||GEL||100,000,000||FRN|
|PRC yuan||23 January 2015||10 November 2019||CNY||250,000,000 (tap)||3.200|
|PRC yuan||10 November 2014||10 November 2019||CNY||1,000,000,000||3.200|
|Indian rupee 1/||28 August 2014||17 August 2016||INR||3,000,000,000||6.350|
|Singapore dollar||14 November 2013||14 November 2018||SGD||500,000,000||1.027|
|PRC yuan**||21 October 2010||21 October 2020||CNY||1,200,000,000||2.850|
|PRC yuan||8 December 2009||8 December 2019||CNY||1,000,000,000||4.200|
|Malaysian ringgit||8 February 2007||8 February 2017||MYR||500,000,000||4.000|
|Thai baht||18 September 2006||18 September 2016||THB||1,000,000,000||5.540|
|PRC yuan*||4 October 2005||14 October 2015||CNY||1,000,000,000||3.340|
*Co-issuer with IFC / **Offshore CNY
FRN = floating rate note
1/ Payable in US dollar.