乐动体育注册MANILA, PHILIPPINES (6 May 2019) — The Asian Development Bank (ADB) and the Government of the Republic of Fiji have agreed to work together on the planned issuing of offshore Fijian dollar-linked bonds by ADB.
Under the initiative—struck during a meeting between ADB’s Vice-President for Finance and Risk Management Ms. Ingrid van Wees and Fijian Attorney-General and Minister for Economy Mr. Aiyaz Sayed-Khaiyum—ADB will seek to mobilize Fijian dollar funding from international investors for investments in Fiji through a currency-linked structure. Currency-linked bonds are denominated in the local currency of the market they serve.
“ADB is delighted to support the development of Fiji’s capital markets,” said ADB Treasurer Mr. Pierre Van Peteghem. “The initiative marks another milestone in ADB’s support for Fiji and our strategy of delivering local currency funding in developing countries.”
The proceeds of the planned bonds will enable ADB to offer local currency loans in Fiji and help to reduce foreign exchange risk for ADB’s borrowers.
“International financiers have long recognized Fiji as an attractive destination for investment—a reputation that will be further bolstered by this new partnership with ADB,” said Mr. Sayed-Khaiyum. “This groundbreaking initiative removes the financial risks and costs associated with overseas currency transactions and conversions. As a result, it will cultivate a more business-friendly bond market and, most importantly, free up more funds for an infusion of private sector investment right here in Fiji.”
乐动体育注册ADB is a regular borrower in mainstream international bond markets but has also led issuance in developing Asian countries as part of its efforts to promote domestic bond markets as an alternative to bank lending. Overall, ADB raised more than $23.5 billion from the capital markets in 2018.
乐动体育注册ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. In 2018, it made commitments of new loans and grants amounting to $21.6 billion. Established in 1966, it is owned by 68 members—49 from the region.