Equity Participation in CGIF Providing Guarantees to Corporate Securities in the ASEAN+3 Region
Support for the Prevention of International Financial Disorder
The Credit Guarantee and Investment Facility (CGIF) is a trust fund established in November 2010 within the Asian Development Bank (ADB). All the member countries of the ASEAN+3*1 and the ADB made capital contribution to the CGIF, with JBIC making the largest contribution of 200 million dollars, out of its total fund volume of 700 million dollars.
The primary function of the CGIF is to provide guarantees for local currency-denominated bonds issued by the companies in the region with the aim of helping develop regional bond markets. The operational principles of the CGIF have been worked out in working-level meetings in which the finance ministry officials of the region participated. In these meetings, JBIC has contributed to designing framework of CGIF by drawing on the expertise on bond guarantees and corporate credit analysis gained through its operations.
The CGIF is one of the outcomes of the Asian Bond Markets Initiative agreed on at the ASEAN+3 Meeting in 2003. The CGIF is expected to contribute to developing bond markets in the ASEAN+3 region as well as preventing financial disorder in the region.
- *1ASEAN+3 is a forum for cooperation between the Association of South East Asian Nations (Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore,Thailand and Viet Nam) and three East Asian countries of China, Republic of Korea and Japan.