CAREC motorway: The Asian Development Bank (ADB) yesterday agreed to lend Pakistan $100m to complete the remaining 64km section of the M4 motorway linking the towns of Shorkot and Khanewal in the province of Punjab, giving it the distinction of being the first project to be co-financed by the ADB and the newly established Asian Infrastructure Investment Bank (AIIB).
Pakistan’s Secretary for Economic Affairs Tariq Bajwa and ADB Country Director for Pakistan Werner E. Liepach signed the loan agreement during a ceremony which was also attended by Finance Minister Senator Ishaq Dar and ADB Vice President Wencai Zhang.
“Pakistan must grasp the opportunities presented by its strategic location. Investments in transport and connectivity under the framework of Central Asia Regional Economic Cooperation (CAREC) programmes, as well as other regional cooperation initiatives,” ADB Vice President Wencai Zhang at the signing.
The project marks ADB’s first co-financing agreement with the AIIB which is expected to approve the $100m at a board meeting later this month. The United Kingdom’s Department for International Development (DFID) has also committed a $34m grant for the project. ADB will administer both the AIIB loan and the DFID grant. The project is part of the 1,800 km CAREC transport corridor linking the port city of Karachi in the south, to country’s inland urban centres and onward to Afghanistan and the Central Asia countries.
A number of large European banks including BNP Paribas, Credit Suisse Group, Deutsche Bank, HSBC and UBS have decided to withdraw from the placement of Russian Eurobonds. According to the The Wall Street Journal, the decision has been taken on the recommendation of Brussels, which had previously (more…)blogspot Read More»
South Pars bonds: Iran’s oil ministry was today due to issue $1.7bn in bonds, $1.2bn of which will be used to fund further development of its giant South Pars gas field in the Persian Gulf. The bonds were scheduled to be issued on the Tehran stock exchange at a 21% annual interest rate.
In January, Oil minister Bijan Namdar Zanganeh said that (more…)
Russian eurobond issue: Russia is to go ahead with plans to raise finance through a $3bn eurobond issue with or without US participation, according to Finance Minister Anton. “We are confident the issue will take place irrespective of whether the US banks participate or not. We are going to borrow $3 bn on the market this year. I think investors will show interest in Russian securities,” he said late last week.
His remarks (more…)
Kazakh road construction: Kazakhstan is looking to raise $8bn in loans to fund its 4,700km road construction programme, the Deputy Chairman of its Roads Committee Amangeldy Bekov said today. “International financial institutions will underwrite about 70% of tall he projects,” he told a press conference. “An initial agreement [has already been] reached with the the International Development Bank, the EBRD, the ASDB and the Islamic Development Banks to finance the Center-West and Center-South projects.”AKIpress Read More»
Hong Kong bankers and private equity players are on a mission to capitalise on the infrastructure financing opportunities that China’s ‘Belt and Road’ initiative are likely to throw up over the next decade, the Chairwoman of its Financial Services Development Council Laura Cha told the Asian Financial Forum this week. “Hong Kong (more…)scmp Read More»
Eurobond default: Russia is going to file a lawsuit against Ukraine after Kiev failed to repay its $3bn Eurobond and $75m of interest that fell due yesterday, the Russian finance ministry has announced. Russia has repeatedly said it would regard non-payment of the eurobond – which was issued by the government of former President Viktor Yanukovich in late 2013 and bought by Russia in its entirety – a default that would trigger legal action. “A corresponding lawsuit will be filed in an English court in compliance with the established procedures,” the ministry said on its website.
For his part, Ukraine’s Prime Minister Arseny Yatseniuk had repeatedly said that Ukraine would not repay the Eurobond. His government, which has separately reached an agreement with private creditors to restructure its sovereign and sovereign-guaranteed debt, also insists the Eurobond is commercial debt and that it cannot offer Russia a better deal than other creditors.
The bond was issued just two months before Yanukovich fled in the face of bloody street protests triggered by his seeking to halt Ukraine’s swing toward European integration in favor of closer economic ties with Russia. A new Free Trade Agreement between Ukraine and Russia comes into force today, a development which has prompted Russia to annul its own FTA with its western neighbour.Vedomosti Read More»
Russian bond debt: Ukraine has said that it does not intend to repay the $3 billion in bonds it owes Russia and which come due tomorrow, bringing the two countries a step closer to a court battle amid a new wave of economic tension between Kiev and Moscow. The Ukrainian Prime Minister Arseniy Yatsenyuk said that his government was going to (more…)Bloomberg Read More»
The Islamic Development Bank (IDB) was this weekend invited to invest in the 1,735km TAPI pipeline project by Turkemenistan’s President Gurbanguly Berdimuhammadov after its own President Ahmad Mohamed Ali Al Madani arrived in Ashgabat for the country’s Neutrality Day celebrations last Saturday,
The TAPI pipeline (more…)
Ukraine debt: Russian President Vladimir Putin yesterday told his government to take Ukraine to court if it did not repay its $3bn Eurobond while other Prime Minister Dmitry Medvedev criticised the International Monetary Fund for softening its lending rules to help the “crooks” in Kiev.
The Kremlin reacted (more…)