Summary of Proposed Investment
Project Number
11002
Company Name
EMERGING ASIA PTE. LTD.
Date SPI Disclosed
Jun 15, 2001
Country
East Asia and Pacific Region
Industry
Financial Markets
Projected Board Date
Jul 26, 2001
Status
Completed
Sector
Finance Companies
Department
Regional Industry - FIG Asia & Pac
Environmental Category
C - No Impact
Previous Events
Approved : Jul 26, 2001
Signed : Sep 17, 2001
Invested : Sep 20, 2001
Project Description
The project consists of the establishment of an emerging market, private sector focused, collateralized bond obligation (CBO) vehicle. The venture will securitize Asian emerging markets bonds, through the issuance of various classes of securities to institutional investors backed primarily by a portfolio of bonds issued by corporates in Asia. The project will be the first structured financing transaction of this type in Asia since the crisis, and the first ever focusing on Asian corporates.
IFC''s role:
IFC would play a critical role in structuring the project to achieve a more viable financial structure and will, through its investment, fill the gaps in the financial plan which cannot be filled by the market at this time.
Development Impact
- Mobilization - through this investment, IFC will help demonstrate the feasibility and effectiveness of securitization of financial assets as a source of funds mobilization for emerging markets;
- Development of Asian bond markets - as purchasers of Asian corporate bonds this and similar CBO vehicles will encourage the re-entry of Asian companies into the corporate bond markets. Furthermore, the active management of bond portfolios held by these vehicles will help improve market liquidity;
- Market signal - whilst the economic fundamentals in many of the Asian economies have improved over the last few years after the Asian crisis, investor perception about these markets remains negative. This has made recovery more difficult. Even some of the best companies have not been able to access badly needed financing. The transaction will help improve the overall market attitude towards Asia and in that process contribute to the recovery process.
IFC''s role:
IFC would play a critical role in structuring the project to achieve a more viable financial structure and will, through its investment, fill the gaps in the financial plan which cannot be filled by the market at this time.
Development Impact
- Mobilization - through this investment, IFC will help demonstrate the feasibility and effectiveness of securitization of financial assets as a source of funds mobilization for emerging markets;
- Development of Asian bond markets - as purchasers of Asian corporate bonds this and similar CBO vehicles will encourage the re-entry of Asian companies into the corporate bond markets. Furthermore, the active management of bond portfolios held by these vehicles will help improve market liquidity;
- Market signal - whilst the economic fundamentals in many of the Asian economies have improved over the last few years after the Asian crisis, investor perception about these markets remains negative. This has made recovery more difficult. Even some of the best companies have not been able to access badly needed financing. The transaction will help improve the overall market attitude towards Asia and in that process contribute to the recovery process.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Ms. Goh Mui Hong
Executive Director and Chief Executive Officer
1 Raffles Place #17-00, OUB Centre, Singapore 048616
Tel. No.: 65-533-6982
Fax. No.: 65-533-2203
Executive Director and Chief Executive Officer
1 Raffles Place #17-00, OUB Centre, Singapore 048616
Tel. No.: 65-533-6982
Fax. No.: 65-533-2203