Local Currency Borrowings

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 31 July 2014

Currency

Issue Date

Maturity Date

Principal

Amount

Coupon %

Singapore dollar

14-Nov-13

14-Nov-18

SGD

    500,000,000

        1.027

PRC yuan**

21-Oct-10

21-Oct-20

CNY

1,200,000,000

2.850

PRC yuan

08-Dec-09

08-Dec-19

CNY

1,000,000,000

4.200

Malaysian ringgit

8-Feb-07

8-Feb-17

MYR

500,000,000

4.000

Thai baht

18-Sep-06

18-Sep-16

THB

1,000,000,000

5.540

PRC yuan*

4-Oct-05

14-Oct-15

CNY

1,000,000,000

3.340

*Co-issuer with IFC
**Offshore CNY