Regional: Developing Securitization Markets in ASEAN+3 Region

Sovereign Project | 41233-012

Summary

The technical assistance (TA) aims to support the development of efficient securitization structures and to enable capital markets across the ASEAN 3 region to further encourage greater cross border investments, and to stimulate increased issuance opportunities for securitization transactions within the region. The study will first briefly summarize the current status of securitization in ASEAN 3 countries, analyze existing securitization techniques and innovative products in the region, and draw parallels to more developed securitization markets, such as in the US and Europe. Second, the study will discuss how to apply securitization techniques in ASEAN 3 countries and explore the possible underlying assets that can be securitized by identifying the region's needs.

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Project Name Developing Securitization Markets in ASEAN+3 Region
Project Number 41233-012
Country Regional
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 6469-REG: Developing Securitization Markets in ASEAN+3 Region
Japan Special Fund US$ 700,000.00
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
Description The technical assistance (TA) aims to support the development of efficient securitization structures and to enable capital markets across the ASEAN 3 region to further encourage greater cross border investments, and to stimulate increased issuance opportunities for securitization transactions within the region. The study will first briefly summarize the current status of securitization in ASEAN 3 countries, analyze existing securitization techniques and innovative products in the region, and draw parallels to more developed securitization markets, such as in the US and Europe. Second, the study will discuss how to apply securitization techniques in ASEAN 3 countries and explore the possible underlying assets that can be securitized by identifying the region's needs. Third, the study will identify common impediments legal and regulatory environment, taxation, data limitations, and other causes of market inefficiency within the region with the aim of defining ways to further develop the region's securitization markets, especially for cross border transactions (where investors are resident in jurisdictions other than those where the underlying assets are located). Based on this analysis, the study will then generate a set of standards and best practices including the required environment and market infrastructure necessary to enhance securitization structures in ASEAN 3 countries, and draft a self assessment template for ASEAN governments to assist them in periodically assessing progress toward developing efficient securitization markets. Finally, the study will explore how to facilitate active securitization markets in ASEAN 3 countries. The study will specifically explore how to enhance liquidity of issued securitized products (to develop secondary markets) and identify possible schemes to assist securitization transactions. The study will utilize the findings of recent OREI publications in particular the April 2007 Asia Bond Monitor, which included a theme chapter on securitization. The TA will assist ASEAN 3 officials by offering policy recommendations to address the impediments to securitization and suggesting ways to introduce innovative securitization schemes that will encourage not only securitization specifically, but also further develop the region's capital markets in general. The results of the study will be presented to the ABMI WG1 members for further consideration.
Project Rationale and Linkage to Country/Regional Strategy
Impact Developed local currency bond markets will reduce financial vulnerabilities and encourage the use of Asian savings within the ASEAN+3 region
Project Outcome
Description of Outcome Informed decision by ASEAN+3 officials in developing securitization markets
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

1. Analysis of securitization case studies and best practice recommendations

2. Reference sheet to promote cross-border issuance and trading of securitized products

3. List of new assets and securitization structures

4. Draft policy recommendations for promoting securitization in ASEAN+3 countries

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Regional
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 Three international consultants (a financial market specialist, a structured finance legal and regulatory specialist, and a securitization specialist) and one national consultant (project coordinator) will be engaged for a total of 17 person months of international consultancy services and 12 person months of national consultancy services.
Responsible ADB Officer Kuei-Hua Wu
Responsible ADB Department Office of Regional Economic Integration
Responsible ADB Division Office of Regional Economic Integration
Executing Agencies
Asian Development Bank Sabyasachi Mitrasabymitra@adb.org6 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 10 Jul 2008
Last Review Mission -
PDS Creation Date 16 Apr 2010
Last PDS Update 16 Sep 2010

TA 6469-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
10 Jul 2008 - 10 Jul 2008 30 Jun 2009 31 Dec 2011 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
700,000.00 0.00 0.00 0.00 0.00 0.00 700,000.00 10 Jul 2008 280,008.52

Safeguard Documents

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Evaluation Documents

See also: Independent Evaluation

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