Emerging Asia CBO Ltd.

completed

The project consists of the establishment of an emerging market, private sector focused, collateralized bond obligation (CBO) vehicle. The venture will securitize Asian emerging markets bonds, through the issuance of various classes of securities to institutional investors backed primarily by a portfolio of bonds issued by corporates in Asia. The project will be the first structured financing transaction of this type in Asia since the crisis, and the first ever focusing on Asian corporates. IFC''s role:IFC would play a critical role in structuring the project to achieve a more viable financial structure and will, through its investment, fill the gaps in the financial plan which cannot be filled by the market at this time. Development Impact- Mobilization - through this investment, IFC will help demonstrate the feasibility and effectiveness of securitization of financial assets as a source of funds mobilization for emerging markets;- Development of Asian bond markets - as purchasers of Asian corporate bonds this and similar CBO vehicles will encourage the re-entry of Asian companies into the corporate bond markets. Furthermore, the active management of bond portfolios held by these vehicles will help improve market liquidity;- Market signal - whilst the economic fundamentals in many of the Asian economies have improved over the last few years after the Asian crisis, investor perception about these markets remains negative. This has made recovery more difficult. Even some of the best companies have not been able to access badly needed financing. The transaction will help improve the overall market attitude towards Asia and in that process contribute to the recovery process.