- Although there have been local currency project
bonds, the product has been rare in Asia
- As Asian banks – particularly those from
China, Japan and Korea – become more active in Latin
America, they will become more familiar with project bond
- Ideally an Australian sponsor would be the first
to tap the market, but the first issuer may be a sponsor
unable to access the local bank financing
- The implementation of Basel III may quicken the
advent of the project bond market in Asia.
Although successful project bond and sukuk deals
have been seen in Asia, they have not become as important in
Asia as in other jursidictions. But Asian lenders’
increased activity abroad may change that.
Latin America is increasingly becoming a key area for Asian
lenders. For example, last year China Development Bank joined
Latin American multilaterals Inter-American Development Bank
and the Corporación Andina de Fomento (CAF) in...