ADB extends $300M loan for PH debt market reforms
A deeper capital market will make infrastructure financing cheaper.
The Asian Development Bank’s (ADB) has approved a $300 million loan to help the Philippines undertake bold capital market reforms, with the long-term goal of lowering borrowing costs in the country.
In a statement, the ADB Board of Directors said the grant provides extra funding support for regulators via the Encouraging Investment through Capital Markets Reform Program. An additional $500,000 technical assistance is also being provided by the multilateral lender.
“The package is part of ADB’s comprehensive effort to help the government finance, implement, and manage sophisticated public works projects and strengthen the framework for public-private partnerships,” the ADB said in a statement.
The Bureau of the Treasury unveiled an 18-month strategy to deepen the Philippine debt market, which is expected to support capital-raising activities for the Duterte administration’s “Build, Build, Build” program.
In a way, ADB’s fresh loan line ultimately seeks to spur increased infrastructure spending in the Philippines.