Introducing CGIF

Kiyoshi Nishimura
Chief Executive Officer

The 7th Asian Bond Markets Summit

20 November 2012 Singapore
 Profile of CGIF
Objective Development of Capital Markets in ASEAN+3
(Part of Asian Bond Market Initiative (ABMI))

Equity Capital US$ 700 million

Contributors Governments of ASEAN+3
(Shareholders) (10 member countries of ASEAN + China, Japan, South
Korea) and Asian Development Bank (ADB)
Legal Structure A Trust Fund of ADB
Main Operations Guaranteeing Corporate Bonds issued by
companies in ASEAN+3
Establishment 25 November 2010
(Operational since May 2012)
Rating AA+/A-1+/axAAA（Standard & Poor’s）
CGIF aims to catalyze more stable and efficient mobilization of
Asian Savings in the region
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Background of CGIF’s Establishment
Prevention of Currency Crisis
Accelerate Economic Development of ASEAN+3

Asian Bond Markets Initiative (ABMI)

Rebalance excessive dependence on Bank Loans
Develop Capital Markets (Bond Markets) in the Region

• Help issue bonds in matching currency

• Aim to match debt tenures with investments
• Transcend country sovereign ceilings
• Introduce bond issuers to new markets
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CGIF’s Bond Guarantee Operations
Eligibility Criteria Guarantee Terms Transaction Parameters

ASEAN+3 company Irrevocable & unconditional Country Ceiling: US$140 m

(nationality of parent company or
primary shareholders are also
considered)

Acceptable credit profile to Covers non-payment Currency Ceiling: US$280 m

CGIF
(Investment grade (min BBB-) on
local rating scale)
Guarantees 100% principal and Tenure: Up to 10 years
Not on prohibited list of coupon payments
activities (Partial Guarantee is also available)
(e.g. arms production, alcohol
beverages, tobacco, gambling etc.-
full list on CGIF’s website) CGIF retains right to: Foreign denominated issuance
(i) Accelerate principal claim will require a natural or
Satisfies CGIF’s environment & payments upon default or financial hedge
social safeguard standards (ii) Maintain payment schedule
(similar to ADB’s)

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CGIF Market Focus
Initial focus on 5 ASEAN countries (Indonesia, Malaysia,
Philippines, Singapore, and Thailand) in the following areas:

 Cross boarder transactions (naturally or financially hedged)

 First time issuer in domestic bond market

(overcoming rating cliff)

 Tenure extension

 Overcoming limitation in absorption capacity

 Bond issue targeting offshore investors who want

currency exposure

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 Thank you!

Key Contact 37/F Joy Nostalg Center

Kiyoshi NISHIMURA (Mr.)
Chief Executive Officer
Tel: +63(2) 988 3911
knishimura@cgif-abmi.org
17 ADB Avenue, Ortigas Center
Pasig City, 1600 Metro Manila
Philippines
www.cgif-abmi.org