De-risking and green securitisation will help unlock much-needed institutional capital for sustainable infrastructure projects in Asia, say executives at multilateral development banks.
The China-based multilateral bank could refinance its brownfield infrastructure projects in the capital markets, giving institutional investors infrastructure-linked assets to invest into.
Financial services firms and governments should work to create more products providing exposure to infrastructure, an AsianInvestor forum heard. Australia is held up as a good model.
Risk-averse by nature, institutional investors need credit enhancements and minimum guarantees if they are to invest more in Asian infrastructure.
The Asian Development Bank does not see a bubble forming in the Asian local-currency bond markets, but Allianz Global Investors believes otherwise.
The Asian Development Bank warns that the region must improve bond market liquidity and cooperation or bond prices will suffer.