Philippines Adb Issues Tender

The Asian Development Bank ADB has recently raised Rp1.2 trillion or around 84 million from the issuance of rupiah-linked bonds rupiah-linked bonds outside Indonesia.The transaction is structured as a 15-year fixed-interest bond maturing in December 2034 making it an ADB-issued local currency bond with the longest maturity period. These bonds will help finance various ADB infrastructure projects in Indonesia.ADB supports the development of capital markets in this region since the 1970s.The growth of the local currency bond market is important and strategic for developing countries in Asia said Pierre Van Peteghem ADB Treasurer. However obtaining adequate tenor funding to support ADB loans with long maturities is often still a challenge. With the issuance of these 15-year bonds ADB not only solved the problem but also provided a benchmark that other bond issuers could follow. The issuance of these bonds which are denominated in Indonesian rupiah but paid in US dollars is led by JP Morgan as a single underwriter. This newly issued bond has a coupon with 7.80 interest which is paid every 6 months. 70 of the bonds are placed in Europe and 30 in Asia with participants in the form of financial institutions banks and retail investors.The proceeds from the sale of these bonds will be mobilized to support ADB loans in local currency in Indonesia. In 2017 ADB has provided 2.035 billion in loans guaranteed by the government as well as those not guaranteed by the government as well as technical assistance and grants for Indonesia. Indonesia is one of the largest borrowers in the ADB.ADB routinely borrows on the international bond market but also leads bond issuance in the developing Asia region which is part of ADBs efforts to promote the domestic bond market as an alternative to borrowing from banks. So far during 2019 ADB has raised 180 million from bond issuance in Kazakhstan and the Philippines.ADB is committed to achieving a prosperous inclusive resilient and sustainable Asia and Pacific and continues its efforts to eradicate extreme poverty. In 2018 ADB committed new loans and grants worth 21.6 billion. Established in 1966 the ADB is owned by 68 members 49 of whom are in the Asia and Pacific region.