48422-001: Enhancing Bond Guarantee Structuring Skills in India | Asian Development Bank

India: Enhancing Bond Guarantee Structuring Skills in India

Nonsovereign (Private) Project | 48422-001 Status: Closed

The proposed assistance will partially finance the incremental costs of developing the legal documentation for three model transactions, based on actual issuances. ADB will then raise awareness and disseminate this template documentation via (i) its website and (ii) hosting a knowledge event in Mumbai for public and private sector participants from India and neighboring countries. The template documentation is expected to significantly assist the Indian bond market's development by enabling the use of guarantee structures for infrastructure projects bonds, which will allow long-term institutional investors to invest in them. It will deepen the bond market through the increased issuance of project bonds for infrastructure projects, traditionally financed through the banking sector. At the same time, it will make bond markets more liquid since institutional investors are legally enabled to buy and trade these papers.

Project Details

Project Officer
Lambert, Donald J. South Asia Department Request for information
Country
  • India
Sector
  • Finance
 
Project Name Enhancing Bond Guarantee Structuring Skills in India
Project Number 48422-001
Borrower/Company
Country India
Location
Type or Modality of Assistance
8764 Technical Assistance USD 225,000 Proposed
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Finance / Banking systems and nonbank financial institutions

Gender Equity and Mainstreaming No gender elements
Responsible ADB Department South Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, SARD
Responsible ADB Officer Lambert, Donald J.
Project Sponsor(s)
Objectives and Scope The proposed assistance will partially finance the incremental costs of developing the legal documentation for three model transactions, based on actual issuances. ADB will then raise awareness and disseminate this template documentation via (i) its website and (ii) hosting a knowledge event in Mumbai for public and private sector participants from India and neighboring countries. The template documentation is expected to significantly assist the Indian bond market's development by enabling the use of guarantee structures for infrastructure projects bonds, which will allow long-term institutional investors to invest in them. It will deepen the bond market through the increased issuance of project bonds for infrastructure projects, traditionally financed through the banking sector. At the same time, it will make bond markets more liquid since institutional investors are legally enabled to buy and trade these papers. As a result, the financial sector in India will benefit from deeper and more liquid bond markets while the banking sector will be able to mitigate maturity mismatches in their balance sheets. The model documentation may also serve as a model for neighboring countries, such as Sri Lanka, Bangladesh, Pakistan, and Nepal that have comparable legal systems.
Linkage to Country/Regional Strategy
Safeguard Categories
Environment
Involuntary Resettlement
Indigenous Peoples
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
Business Opportunities
Consulting Services ADB will engage a minimum of two consultants, an international English law counsel and a national India law counsel, for intermittent services to develop the model transaction documentation and conduct the one-day seminar. ADB will recruit all consultants under the TA in accordance with ADB's Consulting Guidelines (2013, as amended from time to time). ADB will use individual consultant selection and pay the consultants on an hourly basis (subject to a cap).
Timetable for assistance design, processing and implementation
Concept Clearance -
Credit Committee Meeting -
Approval -
Last PDS Update 17 Nov 2014

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Related Publications

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