INCHEON: : The Asian Development Bank may consider issuing rupee denominated bonds if market conditions improve and there is demand for such issuances, president Masatsugu Asakawa said.
INCHEON: : The Asian Development Bank may consider issuing rupee denominated bonds if market conditions improve and there is demand for such issuances, president Masatsugu Asakawa said.
He said the multilateral lending agency intends to increase raising bonds in local currencies to reduce the forex risks being faced by member countries like India.
He said the multilateral lending agency intends to increase raising bonds in local currencies to reduce the forex risks being faced by member countries like India.
“We are encouraged to increase our local currency finance for countries to avoid the impact of foreign exchange risks. As long as market conditions are pertinent, as long as demand is there, we would very much like to increase the local financing,” Asakawa said.
“We are encouraged to increase our local currency finance for countries to avoid the impact of foreign exchange risks. As long as market conditions are pertinent, as long as demand is there, we would very much like to increase the local financing,” Asakawa said.
In January 2021, the ADB listed 10-year masala bonds or Rupee denominated bonds, worth ₹300 crore on the global securities market platform of India INX, the international exchange located at the International Financial Services Centre-Gift City in Gujarat.
In January 2021, the ADB listed 10-year masala bonds or Rupee denominated bonds, worth ₹300 crore on the global securities market platform of India INX, the international exchange located at the International Financial Services Centre-Gift City in Gujarat.
Speaking to reporters at the start of ADB’s annual meeting of its board of governors, he said the $25 billion investment into India over the next five years is subject to board approval and hasn’t been finalized.
Speaking to reporters at the start of ADB’s annual meeting of its board of governors, he said the $25 billion investment into India over the next five years is subject to board approval and hasn’t been finalized.
“It is my ambition. However, India is the largest requirements in South Asia right now. In my conversation with Prime Minister Narendra Modi during the bilateral meetings, although I can’t share details, but PM Modi emphasized the importance of continuous construction of infra and renewable energy,” he added.
“It is my ambition. However, India is the largest requirements in South Asia right now. In my conversation with Prime Minister Narendra Modi during the bilateral meetings, although I can’t share details, but PM Modi emphasized the importance of continuous construction of infra and renewable energy,” he added.
In response to a query on the South Asian markets and their growth prospects, he said India’s economic growth will be beneficial for the entire South Asian region, including countries like Sri Lanka and Pakistan, that are facing food and energy crises.
In response to a query on the South Asian markets and their growth prospects, he said India’s economic growth will be beneficial for the entire South Asian region, including countries like Sri Lanka and Pakistan, that are facing food and energy crises.
While ADB slashed India’s GDP growth forecast for FY23 to 6.4% from its earlier projection of 7%, it expects the growth rate to rebound to 6.7% in FY24 on the back of private investment and industrial growth. India has been seeking more investments in priority sectors of clean energy, infrastructure spending and climate financing from multilateral lending institutions, even as it pushes for efforts to boost financial inclusion. Last month, the ADB announced plans to give at least $14 billion over 2022-2025 as support to ease a “worsening food crisis” in Asia and the Pacific while aiming to improve long-term food security by strengthening food systems against the impacts of climate change and biodiversity loss.
While ADB slashed India’s GDP growth forecast for FY23 to 6.4% from its earlier projection of 7%, it expects the growth rate to rebound to 6.7% in FY24 on the back of private investment and industrial growth. India has been seeking more investments in priority sectors of clean energy, infrastructure spending and climate financing from multilateral lending institutions, even as it pushes for efforts to boost financial inclusion. Last month, the ADB announced plans to give at least $14 billion over 2022-2025 as support to ease a “worsening food crisis” in Asia and the Pacific while aiming to improve long-term food security by strengthening food systems against the impacts of climate change and biodiversity loss.
The Russian invasion of Ukraine has disrupted food staples and fertilizer supplies, straining a global food system already weakened by climate change impacts and pandemic-related supply shocks.
The Russian invasion of Ukraine has disrupted food staples and fertilizer supplies, straining a global food system already weakened by climate change impacts and pandemic-related supply shocks.
On Tuesday, Asakawa announced ADB’s newest climate finance programme: the Innovative Finance Facility for Climate in Asia and the Pacific (IF-CAP). “The climate events we have experienced over the past 12 months will only increase in intensity and frequency, so we must take bold action now. IF-CAP is an exciting, innovative program that will have a real impact. And it is another example of how ADB serves as the climate bank for Asia and the Pacific.”
On Tuesday, Asakawa announced ADB’s newest climate finance programme: the Innovative Finance Facility for Climate in Asia and the Pacific (IF-CAP). “The climate events we have experienced over the past 12 months will only increase in intensity and frequency, so we must take bold action now. IF-CAP is an exciting, innovative program that will have a real impact. And it is another example of how ADB serves as the climate bank for Asia and the Pacific.”
IF-CAP’s initial partners are Denmark, Japan, the Republic of Korea, Sweden, the UK and the US. Those partners are in discussions with ADB about providing a range of grants for project preparation along with guarantees for parts of ADB’s sovereign loan portfolios. The reduced risk exposure created by the guarantees will allow ADB to free up capital to accelerate new loans for climate projects. With a model of ‘$1 in, $5 out’, the initial ambition of $3 billion in guarantees could create up to $15 billion in new loans for much-needed climate projects across Asia and the Pacific.
IF-CAP’s initial partners are Denmark, Japan, the Republic of Korea, Sweden, the UK and the US. Those partners are in discussions with ADB about providing a range of grants for project preparation along with guarantees for parts of ADB’s sovereign loan portfolios. The reduced risk exposure created by the guarantees will allow ADB to free up capital to accelerate new loans for climate projects. With a model of ‘$1 in, $5 out’, the initial ambition of $3 billion in guarantees could create up to $15 billion in new loans for much-needed climate projects across Asia and the Pacific.
The reporter is in Incheon, South Korea, at the invitation of Asian Development Bank.
The reporter is in Incheon, South Korea, at the invitation of Asian Development Bank.