The Republic of the Philippines shook up the Panda bond market in March with an exceptionally tight debut that underscored the growing role of overseas investors in onshore renminbi financings. The Baa2/BBB/BBB rated sovereign priced the Rmb1.46bn (US$230m) 5.0% three-year notes in China’s interbank market at the low end of 5.0%–5.6% indicative guidance. In a first for the Panda market, most of the bonds went to overseas buyers, helping the Philippines smash through pricing expectations and leav

The Philippines has established itself in recent years as a favourite among global emerging-market investors. Its sovereign bonds are so popular in the US dollar market that its latest 10-year issue priced in January at 3.0%, a mere 37.8bp premium over US Treasuries. Strong economic growth and a prudent fiscal policy have lifted the country to a solid investment-grade rating from all three major credit agencies. Fitch raised its sovereign rating to BBB in December, falling in line with Moody’s (

The Philippines’ infrastructure problems are immediately apparent to anyone arriving in Manila’s main airport. The traffic slows metres from the ageing Ninoy Aquino International Airport terminal, and gets steadily worse throughout the ride to the gleaming new business district of Bonifacio Global City. The five-kilometre journey takes 45 minutes. President Rodrigo Duterte has run out of patience. A year after he took office, his administration had ramped up infrastructure spending to 5.4% of GD

Advancements in financial technology are opening up new opportunities for fast-growing Asian companies to finance trade and expansion, but pose new challenges for the region’s regulators. How can blockchain technology help power Asian development, and are Asia’s central banks ready to embrace virtual assets? The ADB has so far been quiet on the topic of blockchain technology or virtual currencies, but the 2018 annual meetings promise to change that. Discussions on the future of finance feature h

Back in 1980, when automated teller machines were beginning to catch on in the US, a Wells Fargo executive predicted the end of the traditional branch network. Thousands of jobs would go as machines took over the tasks of handling money, since customers would no longer need to visit a physical branch. In fact, the reverse happened. ATMs did not replace bank branches; they made them more efficient. By taking away some of the routine tasks, the cash machines freed up bank staff to work on more pro

Asia’s emerging capital markets offer a case study in the hurdles to regional integration. While local bond markets are now far deeper than they were before the Asian financial crisis of 1997-98, moving capital across borders remains a challenge. The ADB and the ASEAN+3 Bond Market Initiative are looking to change that. “We don’t just want to promote local bond markets, we also want to promote regional integration,” said Avonechith “Noy” Siackhachanh, a senior adviser at the ADB working closely

Growing global demand for responsible investments has created an opportunity for Asia to finance more sustainable, long-term projects through the institutional capital markets. Connecting issuers and investors, however is proving a frustrating task. Asian issuers see little benefit from “Green” financings that are just as expensive as conventional debt – or even more costly, given the additional opinions and monitoring required. And demand for responsible assets is yet to take off in the region’

Since Deng Xiaoping’s famous Southern Tour in 1992, when China’s paramount leader rekindled the country’s economic reforms, and particularly since China’s entry into the WTO in 2001, American consumers have gained significant purchasing power from low-cost imports from China. At the same time US manufacturers have lost competitiveness and market share against Chinese suppliers. Although this conflict often colours views of the recent rise in trade tensions between the two countries, it represent

Eleven countries, including Japan and Canada, signed a landmark Asia-Pacific trade agreement without the United States in early March in what one minister called a powerful signal against protectionism and trade wars. The deal came as US President Donald Trump vowed to press ahead with a plan to impose tariffs on steel and aluminium imports, a move that other nations and the International Monetary Fund said could start a global trade war. The Comprehensive and Progressive Agreement for Trans-Pac

The Asian Development Bank’s chief economist does not agree with the financial markets. Yasuyuki Sawada struck an upbeat tone at the launch of the bank’s Asian Development Outlook report in mid-April, even as fears of a US-China trade war were rocking risk assets across the world. The US stock market posted its worst week in two years in mid-March after US President Donald Trump announced tariffs on imports of steel and aluminium. Then a tit-for-tat round of tariff threats in early April caused

Walking down one of the long corridors in the ADB’s headquarters in Manila, it is often difficult to make out who is coming in the opposite direction. With the bright sunlight streaming in from a distant window, faces are hidden in shadow until they are close up. In silhouette, the ADB’s profile today looks much the same as it did when Takehiko Nakao took over as president in 2013. On closer inspection, though, one thing quickly becomes clear: it’s bigger. Much bigger. The ADB has added a few no