ADB and Fijian Government Partners For Planned Issuing of Offshore Fijian dollar-linked Bonds
The Asian Development Bank and the Fijian Government has agreed to work together, on the planned issuing of offshore Fijian dollar-linked bonds, by the ADB.
The ADB will seek to mobilize 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.
The proceeds of the planned bonds will enable ADB, to offer local currency loans in Fiji and help reduce foreign exchange risk, for ADB’s borrowers.
Minister for Economy – Aiyaz Sayed-Khaiyum said, international financiers have long recognized Fiji as an attractive destination for investment.
He added – 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 investments, right here in Fiji.