East Asian countries, including 10 ASEAN nations, China , Japan and the Republic of Korea , expect to debut their Credit Guarantee and Investment Facility (CGIF) worth 700 million USD, to support the issuance of local currency-denominated corporate bonds in Asia .
The objective of the Manila-based CGIF is to provide credit guarantees on corporate bonds being issued in local markets in local currencies, contributing to promoting the regional bond market. Japan and China contributed 200 million USD each to the fund, the RoK 100 million USD, ASEAN 70 million USD and the Asian Development Bank will inject 130 million USD.
The Japan Bank for International Cooperation (JBIC) will help to provide vital experience on credit guarantees for CGIF.
CGIF is expected to assist the first bond issuance ahead of the ASEAN+3 Financial Ministers’ Meeting scheduled for Hanoi next May.
The Association of Southeast Asian Nations (ASEAN) groups Brunei , Cambodia , Indonesia , Laos , Malaysia , Myanmar , the Philippines , Singapore , Thailand and Vietnam./.
(VNA)
