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Emerging East Asia’s local currency bond markets are still expanding but risks to the outlook are rising given the prospects of tighter US monetary policy, slower economic growth in Asia, and persistent capital outflows, according to the latest quarterly Asia Bond Monitor from ADB.

The Government of Indonesia and ADB will develop sustainable alternative livelihoods in coastal communities, reform the country’s social security system, improve households’ access to financial service, and enhance financial sector governance and risk management with projects financed by the Japan Fund for Poverty Reduction.

ADB returned to the US dollar bond market yesterday with the pricing of a $2.0 billion 5-year global benchmark bond issue, proceeds of which will be part of the bank’s ordinary capital resources and used in its non-concessional operations.

The Government of Cambodia and ADB today signed loan agreements worth $70 million to expand the country’s rice sector and promote reforms in the finance sector.

Small and medium-sized enterprises located in Sri Lanka’s post-conflict and tsunami-hit areas, where unemployment is high, will soon have better access to finance to start or expand businesses, after ADB signed a $15 million loan with Nations Trust Bank.

ADB is extending a $50 million loan to AccessBank Azerbaijan, the country’s sixth largest bank, to support micro-, small- and medium-sized enterprises operating outside of its capital Baku. The loan has a five year tenor and is priced at market conditions.

ADB President Takehiko Nakao today wrapped up a two-day trip to Papua New Guinea where he met with top government officials and business leaders and visited two key ADB projects.

Emerging East Asia’s local currency bond markets expanded 12.1% year-on-year to $6.7 trillion at the end of March 2013, driven by double-digit growth in corporate bonds, according to the latest edition of ADB's Asia Bond Monitor.

Vendors in three economic corridor towns in Cambodia, Lao People’s Democratic Republic, and Viet Nam will see greater access to microfinance and more space available to set up shop with a $2.5 million Japan Fund for Poverty Reduction grant that will build new markets and enhance financing.

Asia needs a robust bond market that can match the financing requirements of huge infrastructure projects in the region and the growing appetite for long-term assets among local pension and insurance companies, a seminar at ADB's 46th Annual Meeting heard today.