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SEC urges bond issuance framework for cross-border fund-raising.

The Securities and Exchange Commission (SEC) is pushing for a regional bond issuance framework that would facilitate cross-border bond issuances within the ASEAN+3 participating economies.

In partnership with Asian Development Bank (ADB), ASEAN Bond Market Forum (ABMF) recently developed the ASEAN+3 Multi-Currency Bond Issuance Framework (AMBIF), which will allow companies to issue local currency bonds in multiple countries within the region.

The AMBIF is seen as a possible mechanism for addressing the diversity of regulations and market practices among the ASEAN+3, composed of the ten ASEAN member countries including the Philippines, Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Singapore, Thailand and Viet Nam plus China, Japan and South Korea.

ABMF is an aggrupation of fixed income market stakeholders in the ASEAN region such as regulators, trading and settlement operators and SROs. "Currently, a company wishing to issue cross-border bonds in the ASEAN+3 is faced with diversity in rules, regulations and practices, and may incur substantial cost in simply trying to understand the regulations and processes of each country," SEC said in a statement. "This initiative by the ABMF aims to lessen that concern by providing a set of guidelines to assist a company in looking for financing or investment in an unfamiliar market," it added.

By making use of a 'Single Submission Form' in conjunction with country-specific bond market guides and implementation guidelines, the framework aims to facilitate cross-border bond transactions and hopefully provide issuers with a streamlined process for raising funds in any country in the region.


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Title Annotation:Business News
Publication:Manila Bulletin
Date:Sep 14, 2015
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