Asian Development Bank: New partners

The Asian Development Bank is taking commendable steps to position itself as more than just a lender. Faced with rising regional wealth and the arrival of new multilateral institutions, it is right to have one eye on its long-term future. To remain relevant in supporting Asian development, however, it will need to forge new partnerships and show that it can offer more than just its capital. Based on the ADB’s own numbers, Asia needs to invest US$8trn in infrastructure over the 10 years to 2020. It’s probably the most frequently cited piece of...Read more

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Stories in Special Report

Knowledge management

ADB President Takehiko Nakao looks at how the Asian Development Bank is responding to a changing landscape for multilateral lenders and the agenda for this year’s meeting in Frankfurt.

JICA: Quality infrastructure funding

Japan, the ADB’s biggest shareholder, is ramping up its support for Asian infrastructure with commitments totalling US$6.5bn from the Japan International Cooperation Agency. JICA will sponsor a major new fund focusing on “quality and sustainable” infrastructure, named Leading Asia’s Private Infrastructure, or LEAP, which will go towards supporting private sector investments. The ADB will manage the fund, and expects to mobilise a total of US$6bn, once the usual leverage and co-financing multiples are applied. JICA is also providing another...

Treasury: Market access

The ADB’s treasury department is increasing its funding activities and focusing on local currencies as it responds to growing demands for the bank’s assistance. Pierre van Peteghem, ADB treasurer, said the bank faced higher borrowing costs as a result of distortions in the global capital markets over recent months. “Funding costs with respect to Libor for all MDBs, including the ADB, have increased significantly. This is related mainly to the inversion of the US dollar swap curve,” said van Peteghem, who estimates that the bank has faced an...

Hitting the brakes

Challenges to global growth, low commodity prices and volatile capital markets are piling the pressure on Asia in 2016. How vulnerable are Asia’s economies to a slowing China?

Plus ça change

Two new China-based development banks are set to begin lending this year, adding a new layer to social and infrastructure funding across Asia. Talk of a challenge to the established order, however, is overdone.

M4: A new capital highway?

The next stretch of Pakistan’s M4 highway is set to be the first project to be financed jointly by the Asian Development Bank and the Asian Infrastructure Investment Bank. The ADB and the newly established AIIB have identified the M4 project as their first co-financing initiative and are set to sign final documentation in a matter of months, according to people close to the project. The AIIB listed the M4 as the first “business opportunity” on its website on April 11, referring interested parties to an ADB invitation to tender with a May 23...

Coming together

The launch of the ASEAN Economic Community has brought the goal of regional integration one step closer, but ASEAN’s progress is still too slow and uneven to challenge Asian giants India and China.

AMBIF: One small step for integration

A landmark issue in Thailand’s local bond market last year has underlined the challenges in the integration of South-East Asia’s capital markets. Japan’s Mizuho Bank sold Bt3bn (US$85m) of three-year 2.33% bonds in September, completing the first under the ASEAN+3 multi-currency bond issuance framework (AMBIF). Siam Commercial Bank was sole lead manager for the offering. The notes were placed in Thailand and also listed on the Tokyo Pro-Bond market. Mizuho’s long-awaited debut came weeks after regulatory agencies in Malaysia, Singapore and...

Moment of truth

Climate-sensitive investments are gaining ground in Asia despite a slump in fossil fuel prices. Further development, however, will depend on convincing investors that green finance can pay off.

Tiwi Makban: Heating up project bonds

A geothermal power project in the Philippines has raised hopes that Asia’s capital markets can play a bigger role in financing sustainable infrastructure projects. Aboitiz Power issued Asia-Pacific’s first climate bonds in March to refinance its Tiwi-MakBan plant, after obtaining Ps12.5bn (US$263.4m) in credit facilities and guarantees. The deal stands out as a rare capital markets financing for an infrastructure project in Asia, where companies have traditionally relied on bank lending to fund long-term developments. The key to maximizing...

Tricky First steps

Global regulations are complicating efforts to bring Asia’s frontier economies into the global financial markets, putting pressure on multilaterals to bridge the gap.

Social development

Malaysia has shown that sharia-compliant bonds provide a dependable source of funding despite a political crisis that has rocked international confidence.

Back on the radar

Vietnam is bucking the trend in South-East Asia, with an economy growing at its fastest pace in nine years. Connecting the country and its leading companies with global investors, however, remains a challenge.

Special Report

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