Asian export-import (EXIM) banks plan to jointly issue so-called Pan-Asian EXIM bonds to gain better access to capital markets, the Japan Bank for International Co-operation (JBIC) said on November 09.
Under the new scheme, the banks will likely issue such bonds in yen in the Samurai market or in yen or dollars in broader Asian markets, JBIC documents obtained by Reuters showed.
The framework of the scheme will be discussed at an annual forum for Asian EXIM banks in Tokyo, where participating lenders are expected to agree to set up a working group to finalise details.
Participating institutions include export-import banks from Australia, China, India, Indonesia, Japan, Malaysia, the Philippines, South Korea and Thailand.
Japanese business daily Nihon Keizai Shimbun reported that the banks will likely issue 50-60 billion yen ($424-509 million) in Pan-Asian EXIM bonds as early as next year.
They will likely issue them primarily on the Tokyo market but are also considering the Hong Kong and Singapore markets, the newspaper added.
According to the JBIC, the proceeds will be used for projects such as those focusing on regional energy security, promoting collaboration in trade and investment among member nations, and supporting industry.
The JBIC, a government-backed body with long experience in issuing bonds in international markets, will lead the initiative.
Participating countries' export-import banks will issue bonds and place them with a special purpose company, which will then issue Pan-Asian EXIM bonds.
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