Regional: Developing Social Bond Market to Mobilize Resources in Containing Pandemics and Disasters

Sovereign Project | 54198-001

With containing COVID-19's impact becoming a top operational priority of the ADB, the proposed TA will strengthen DMCs' research capacity and knowledge on how to utilize social bond to finance disaster management and strengthen disaster resilience via mobilizing private sector resources. This TA will clarify the concept and framework of social bonds, analyze current social bond market practices and identify priority social impacts that are most relevant to developing Asia. The TA's output will serve as startup activities for further research on assessing social impacts and policy solutions for social bond market development. This TA and further studies will help all DMCs enhance their knowledge and capacity on funding their disaster-related expenditures and increase their disaster resilience by mobilizing private sector resources through capital markets.

Project Details

  • Project Officer
    Tian, Shu
    Economic Research and Regional Cooperation Department
    Request for information
  • Country/Economy
    Regional
  • Sector
    • Finance
Project Name Developing Social Bond Market to Mobilize Resources in Containing Pandemics and Disasters
Project Number 54198-001
Country / Economy Regional
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 9989-REG: Developing Social Bond Market to Mobilize Resources in Containing Pandemics and Disasters
Technical Assistance Special Fund US$ 100,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Finance / Finance sector development

Gender Equity and Mainstreaming Some gender elements
Description With containing COVID-19's impact becoming a top operational priority of the ADB, the proposed TA will strengthen DMCs' research capacity and knowledge on how to utilize social bond to finance disaster management and strengthen disaster resilience via mobilizing private sector resources. This TA will clarify the concept and framework of social bonds, analyze current social bond market practices and identify priority social impacts that are most relevant to developing Asia. The TA's output will serve as startup activities for further research on assessing social impacts and policy solutions for social bond market development. This TA and further studies will help all DMCs enhance their knowledge and capacity on funding their disaster-related expenditures and increase their disaster resilience by mobilizing private sector resources through capital markets.
Project Rationale and Linkage to Country/Regional Strategy ADB has pledged $20 billion in response to COVID-19 pandemic. It is well recognized that developing member countries (DMCs) face challenges in mobilizing domestic resources and require more access to finance as well as the capacity to build disaster resilience to such shocks in the future. During the past two decades, ADB has added a lot of value to DMCs' efforts to develop financial markets. One example is ADB's role as the secretariat of the Asian Bond Markets Initiative, which helps develop local currency bond market in ASEAN+3. In light of the large and growing role of capital markets in financing investments in Asia , it is an opportune time for the region to develop social bond market to mobilize resource in containing pandemics and other disasters. During and in the aftermath of COVID-19, social bond market in the region will receive more attention from issuers, investors and policy makers. However, limited knowledge and awareness about social bonds have constrained the region in tapping capital markets for investment with social impacts.
Impact

DMC's knowledge to address disaster risk and capacity to build disaster resilience enhanced.

Regional financial resilience to disasters in subregions strengthened.

Project Outcome
Description of Outcome Knowledge and capacity of DMCs to finance disaster responses improved.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Knowledge of tapping capital markets for investment in social impacts promoted.

Knowledge and capacity for developing social bond market strengthened.

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 A total of 6.5 consulting inputs will be allocated as follows: (i) 6 person-months for international individual consultants; and (ii) 0.5 person-months for national individual consultants; and (iii) 1 person-months for resource persons (with maximum 10 working days per engagement) will also be engaged within the implementation period of the project.
Responsible ADB Officer Tian, Shu
Responsible ADB Department Economic Research and Regional Cooperation Department
Responsible ADB Division ERMR
Executing Agencies
Asian Development Bank
6 ADB Avenue,
Mandaluyong City 1550, Philippines
Timetable
Concept Clearance -
Fact Finding -
MRM -
Approval 09 Jun 2020
Last Review Mission -
Last PDS Update 10 Jun 2020

TA 9989-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
09 Jun 2020 - 09 Jun 2020 31 Dec 2021 - 13 Jan 2022
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
100,000.00 0.00 0.00 0.00 0.00 0.00 100,000.00 17 Jun 2022 58,556.10

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