ASEAN+3 climate change aid expanded

The Asian Development Bank will help Southeast Asian countries develop their local currency bond markets to expand financing for climate change mitigation projects through a new $1.5-million aid from Japan.

ADB said it approved a technical assistance program to help the Association of Southeast Asian Nations, as well as China, Japan and South Korea — collectively known as ASEAN+3---design mechanisms on marketing, issuances and pricing of sustainability bonds

“The activities are related to enhancing long-term and effective public finance management. The development of local currency bond markets, including debt instruments, operating modalities, transparency of pricing and issuance mechanisms, and the requirement to align issuances with strategy and annual financing plan, helps strengthen public debt risk management and timely government budget financing,” ADB said.

Transparent online data exchange platform

As a result of the technical assistance program, ADB also said investors will see a more transparent and insightful online data-exchange platform about the ASEAN+3 sustainability bonds.

The $1.5-million fund comes from Japan Fund for Prosperous and Resilient Asia and the Pacific which was established in 2000 to support ADB projects related to poverty reduction.

Data from the Intergovernmental Panel on Climate Change show the ASEAN could see an economic loss amounting to $97.3 billion over this decade from extreme weather conditions.

In the Philippines, farmers could endure 15 to 20 percent lower agricultural production due to drought, the panel adds.