Regional: Bond Financing for Infrastructure Projects in the ASEAN+3 Region

Sovereign Project | 41225-012

Summary

The TA aims to promote the development of infrastructure bonds denominated in local currency, facilitate more issuances of such bonds and encourage the investment in and trading of cross border infrastructure bonds. The TA will also help provide mechanisms to serve the region s needs, particularly financing infrastructure projects by local currency denominated bonds. Efficient local currency bond markets will help channel the region s substantial savings to fund long term development needs and could partially fill the huge demand for infrastructure financing. The expected outcome is to increase the volume of bond issuance and investment for infrastructure projects in the region. The study will offer governments policy recommendations that will facilitate the development of bond markets and will increase funding sources for infrastructure projects.

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Project Name Bond Financing for Infrastructure Projects in the ASEAN+3 Region
Project Number 41225-012
Country Regional
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 6460-REG: Bond Financing for Infrastructure Projects in the ASEAN+3 Region
Japan Special Fund US$ 700,000.00
TA 6460-REG: Bond Financing for Infrastructure Projects in the ASEAN+3 Region
Financial Sector Development Partnership Fund US$ 340,000.00
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Sector / Subsector Finance - Money and capital markets
Gender Equity and Mainstreaming No gender elements
Description The TA aims to promote the development of infrastructure bonds denominated in local currency, facilitate more issuances of such bonds and encourage the investment in and trading of cross border infrastructure bonds. The TA will also help provide mechanisms to serve the region s needs, particularly financing infrastructure projects by local currency denominated bonds. Efficient local currency bond markets will help channel the region s substantial savings to fund long term development needs and could partially fill the huge demand for infrastructure financing. The expected outcome is to increase the volume of bond issuance and investment for infrastructure projects in the region. The study will offer governments policy recommendations that will facilitate the development of bond markets and will increase funding sources for infrastructure projects. The TA supports the Office of Regional Economic Integration (OREI) strategy and the Regional Cooperation and Integration Strategy, Pillar 2 (Trade and Investment Cooperation and Integration) which supports cross border infrastructure development as a means for fostering regional cooperation in facilitating trade and investment, and Pillar 3 (Monetary and Financial Cooperation and Integration) as developing bond financing for infrastructure projects will further (a) support regional financial cooperation and integration through increased cross border transactions and (b) promote greater financial stability in the region. The study will complement activities to promote the infrastructure projects by the Regional and Sustainable Development Department, the Private Sector Operations Department and regional departments of ADB.
Project Rationale and Linkage to Country/Regional Strategy
Impact Developed local currency bond markets reduce financial vulnerabilities and encourage the use of Asian savings within the ASEAN+3 region
Project Outcome
Description of Outcome ASEAN+3 officials come up with an informed decision on the development of bond market for infrastructure projects
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Analysis of case studies on infrastructure bond and best practice recommendations

Analysis of legal and regulatory framework and policies to support infrastructure bond financing

Analysis of readiness of markets to issue infrastructure bonds, and identification of conducive market conditions for infrastructure bonds

List of infrastructure projects suitable for bond financing

Draft policy recommendations for bond financing for infrastructure projects

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services Consulting services yet to be determined.
Responsible ADB Officer Chiemi Kaneko
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, SERD
Executing Agencies
Asian Development Bank6 ADB Avenue, Mandaluyong
Metro Manila, Philippines
P.O. Box 789, 1099 Manila,
Philippines
Timetable
Concept Clearance 17 Jul 2007
Fact Finding 10 Mar 2008 to 24 Mar 2008
MRM -
Approval 16 May 2008
Last Review Mission -
PDS Creation Date 18 Jan 2008
Last PDS Update 27 Oct 2010

TA 6460-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
16 May 2008 - 16 May 2008 30 Jun 2009 30 Jun 2011 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
700,000.00 340,000.00 0.00 0.00 0.00 0.00 1,040,000.00 16 May 2008 620,940.97

Safeguard Documents

See also: Safeguards

No documents found.

Evaluation Documents

See also: Independent Evaluation

No documents found.


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