Mapping the future of Asian project bonds

Author: Ashley Lee | Published: 12 Jul 2013
  • 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 offerings;
  • 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 market;
  • 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...