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; the Republic of Korea; Malaysia; the 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.
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 8 June 2017)
|Currency||Issue Date||Maturity Date||Principal||Amount||Coupon %|
|Indian rupee 1/||24 May 2017||24 February 2021||INR||3,000,000,000||6.000|
|Indian rupee 1/||3 April 2017||8 August 2021||INR||1,900,000,000||6.450|
|Indian rupee 1/||9 December 2016||8 August 2021||INR||5,000,000,000||6.450|
|Indian rupee 1/||6 October 2016||6 October 2026||INR||9,000,000,000||6.200|
|Indian rupee 1/||9 September 2016||8 August 2021||INR||7,000,000,000||6.450|
|Indian rupee 1/||8 August 2016||8 August 2021||INR||5,000,000,000||6.450|
|Indian rupee 1/||31 March 2016||16 January 2020||INR||3,000,000,000||6.950|
|Georgian lari||19 February 2015||15 February 2018||GEL||100,000,000||FRN|
|PRC yuan||23 January 2015||10 November 2019||CNY||250,000,000 (tap)||3.200|
|PRC yuan||10 November 2014||10 November 2019||CNY||1,000,000,000||3.200|
|Singapore dollar||14 November 2013||14 November 2018||SGD||500,000,000||1.027|
|PRC yuan**||21 October 2010||21 October 2020||CNY||1,200,000,000||2.850|
|PRC yuan||8 December 2009||8 December 2019||CNY||1,000,000,000||4.200|
*Co-issuer with IFC / **Offshore CNY.
FRN = floating rate note, PRC = People's Republic of China.
1/ Payable in US dollar.