ADB, Fiji agree to work together to issue offshore Fijian-dollar linked bonds

THE Asian Development Bank and the Government of Fiji have agreed to work together on the planned issuing of offshore Fijian dollar-linked bonds by the bank.
Under the initiative agreed to by ADB’s vice-president for Finance and Risk Management Ingrid van Wees and Fiji’s Attorney-General and Minister for Economy Aiyaz Sayed-Khaiyum, the ADB will mobilise Fijian dollar funding from international investors for investments in Fiji through a currency-linked structure.
Currency-linked bonds are denominated in the local currency of the market they serve.
Asian Development Bank treasurer Pierre Van Peteghem said the bank was “delighted to support the development of Fiji’s capital markets”.
“The initiative marks another milestone in ADB’s support for Fiji and our strategy of delivering local currency funding in developing countries.”
The proceeds of the planned bonds will enable ADB to offer local currency loans in Fiji and help to reduce foreign exchange risk for ADB’s borrowers.
“International financiers have long recognised Fiji as an attractive destination for investment – a reputation that will be further bolstered by this new partnership with ADB,” said Sayed-Khaiyum.
“This ground-breaking initiative removes the financial risks and costs associated with overseas currency transactions and conversions.
“As a result, it will cultivate a more business-friendly bond market and most importantly, free up more funds for an infusion of private sector investment right here in Fiji.”