Vietnam to get biggest loan from ASEAN infrastructure fund

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Vietnam is set to get the biggest loan so far from the ASEAN Infrastructure Fund (AIF), set up by Southeast Asian nations and the Asian Development Bank to boost infrastructure development in the region, AIF board members said on Friday.

Also, the AIF is looking to increase its $500 million capital via a bond issue in 2016 or 2017, with regional central banks as possible investors, Bambang Brodjonegoro, Indonesia’s vice minister of Finance and chairman of the AIF, told Reuters on the sidelines of the World Economic Forum on East Asia.

The board of the AIF approved this week a pipeline of projects to be financed from the fund, including a $100 million loan to a power transmission project for Vietnam, said Ramesh Subramaniam, deputy director general of the Asia Development Bank’s Southeast Asia department and AIF board member. He said the projects would be submitted for ADB board approval in July.

The power project will be the single biggest under AIF financing, he said. The ADB will lend another $200 million and the Vietnamese government will finance the rest of the project’s total required financing of about $380 million.

The AIF, funded by equity from members of the Association of Southeast Asian Nations (ASEAN) and the ADB, was created in 2012 to lend about $300 million a year to infrastructure projects.

But with infrastructure needs in Southeast Asia projected at $60 billion a year until 2020, there is a need to increase the AIF’s capital base.

The fund is preparing for credit rating analyses that will support a successful bond sale that could attract the central banks of China, Japan, South Korea and other countries, Brodjonegoro said. A bigger capital will allow it to also lend to the private sector or state-owned enterprises undertaking public-private partnership projects.

 

 

 

 

 

Source : Thanh Nien News | May 23, 2014

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Thomas D'Innocenzi is a highly accomplished, results-focused senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. thomas@novaadvisors.com In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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