Pushing of bonds to fast-track SDGs in ASEAN
ADB (The Asian Development Bank) has proposed a new way for countries in Southeast Asia to tap global capital markets to achieve the Sustainable Development Goals (SDGs).
ADB, a Manila-based multilateral lender has introduced the SDG Accelerator Bond (SAB), which was aimed at helping ASEAN countries reduce the perceived investment risk posed by an issuing entity, sector, or project with no track record on bond issuance.
From what has been stated, the main objective of a SAB is to provide a return comparable to a similar instrument when held to maturity, but offers cheaper funds for projects in initial periods as an incentive to mainstream SDG projects and reach targets more quickly.
The target to support a green, resilient, and inclusive recovery from the pandemic and timely meet the SDGs..
The Philippines, in particular, ranked 99th among 166 countries in the SDG index with a score of 65.5. Among the 17 SDGs, the Philippines has only achieved SDG 12 on responsible consumption and production.