The Asian Development Bank and the Fijian Government have agreed to work together.

This is on the planned issuing of offshore Fijian dollar-linked bonds by ADB.

This initiative was struck during a meeting between ADB’s Vice-President for Finance and Risk Management, Ingrid van Wees, and Economy Minister Aiyaz Sayed-Khaiyum.

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 to reduce foreign exchange risk for ADB’s borrowers.

Sayed-Khaiyum says international financiers have long recognized Fiji as an attractive destination for investment, a reputation that will be further bolstered by this new partnership with ADB.

“This groundbreaking 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 investment right here in Fiji.” 

ADB is a regular borrower in mainstream international bond markets but has also led issuance in developing Asian countries.