The Asian Development Bank (ADB) said it plans to mobilise up to $6bn by 2030 and provide institutional support to capital market regulators across Southeast Asia. Moreover, the initiative aims to accelerate capital market development and strengthen the region’s long-term financial resilience against external shocks.
ADB President Masato Kanda made the announcement at the 13th ASEAN Finance Ministers and Central Bank Governors’ Meeting. Additionally, he said deeper capital markets remain critical as the region faces an increasingly volatile global environment.
“Deep capital markets provide much needed resilience to external shocks, and while ASEAN’s capital markets have grown significantly, they have not reached the scale needed to support the region’s long-term development ambitions,” said ADB President Masato Kanda at the 13th Association of Southeast Asian Nations (ASEAN) Finance Ministers and Central Bank Governors’ Meeting.
“The initiative we are announcing today will help deepen domestic and regional markets, strengthen local currency bond markets, and drive greater institutional investor participation. This is now more important than ever given today’s volatile global environment.”
Policy support targets bond market depth
Capital markets play a key role in mobilising private financing for infrastructure projects in energy, transport, healthcare, and education. Therefore, ADB said the support package will include policy-based financing to help countries strengthen the enabling environment for domestic capital market development and improve regional integration.
ADB also said it will support regulatory upgrades and market infrastructure improvements. Moreover, the programme aims to help create stronger conditions for governments and corporates to issue more sustainable finance instruments.
The bank added that it will support the shift from policy development to execution by investing in securities issued by regional companies. Additionally, it will help issuers structure and launch sustainable bonds, including those issued by governments and private sector entities across ASEAN.
The proceeds from these instruments will support renewable energy, energy efficiency, sustainable transport, and affordable housing projects. As a result, the programme aims to strengthen inclusive and resilient communities through long-term infrastructure investment.
Initiative aims to unlock $30bn in investment
ADB said the $6bn mobilisation plan could help unlock up to $30bn in increased investments in ASEAN capital markets by 2030. Moreover, it expects stronger bond issuance activity to support wider market growth.
Under the initiative, ADB will continue working with the ASEAN Capital Markets Forum (ACMF), which brings together regulators from 11 ASEAN jurisdictions. Additionally, ADB said it will host an ACMF office at its headquarters in Manila to support closer coordination.
