Proposal on ASEAN+3 Multi-Currency Bond Issuance Framework (AMBIF)

Publication | December 2013

This report describes the ASEAN+3 Multi-Currency Bond Issuance Framework proposal in greater detail. The proposal in this report aims to obtain the consent of the policy bodies and regulatory authorities in participating markets.

The amount of local currency bonds outstanding in emerging East Asia has grown sharply from less than US$1.0 trillion at the end of 2001 to US$6.5 trillion at the end of 2012.

However, there still remain various issues to be addressed. For example, the region's bond market is still small in size due to the continued dominance of the banking sector, regional resource channeling needs to be further enhanced, volatile capital flows must be appropriately managed, and there is a need to improve market efficiency.

For a more efficient discussion on implementing cross-border straight-through-processing and streamlining regulations and market practices, the ASEAN+3 Bond Market Forum was established in 2010 to foster standardization of market practices and harmonization of regulations relating to cross-border bond transactions in the region.

The bond markets and infrastructures in the region are rapidly developing by adopting international standards and principles, the efforts toward harmonization and standardization of ASEAN+3 bond markets have only just begun.

Findings

The purpose of this report is to describe the ASEAN+3 Multi-Currency Bond Issuance Framework proposal in greater detail, including the definition of its components and the proposed approaches for its implementation, as well as the idea of pilot issues. The proposal in this report are targeted to obtain the consent of the policy bodies and regulatory authorities in participating markets, so as to create awareness of and interest in AMBIF among institutions in the private sector.

Recommended actions for regulators include the fact that the policy bodies and regulatory authorities interested in participating in the Asian bond markets initiative should start discussions on its implementation based on the approaches, regulatory processes, and considerations detailed in this report.

About this report

The report is the product of the collaborative efforts of the national members and experts and international experts of the ASEAN+3 Bond Market Forum in cooperation with ADB's Office of Regional Economic Integration.

Contents 

  • Executive Summary
  • Background
  • Basic Approaches
  • Developing the Concept of AMBIF
  • AMBIF Components Required for Implementation
  • The AMBIF Regulatory Process
  • Market Requirements and Components
  • Conclusion
  • Next Steps in ABMF Phase 3
  • Appendixes