Kiyoshi Nishimura appointed, as the first CEO of CGIF: ADB

ISLAMABAD, August 05, 2011 (PPI): Kiyoshi Nishimura, a senior banker with the European Bank for Reconstruction and Development (EBRD), has been appointed as the first Chief Executive Officer of the Credit Guarantee and Investment Facility (CGIF), a trust fund of the Asian Development Bank (ADB), says a press release received here on Friday.

CGIF will provide guarantees for local currency denominated bonds issued by investment grade companies in ASEAN+3 countries. ASEAN+3 consist of 10 members of the Association of Southeast Asian Nations with the People’s Republic of China (PRC), Japan, and the Republic of Korea (ROK). Its aim is to help companies, which would otherwise have difficulty tapping local bond markets to secure longer-term financing, reduce their dependency on short-term foreign currency borrowing, and address currency and maturity mismatch.

Increased local currency bond issuance will also promote financial stability in the region and aid the development of ASEAN’s bond markets.

CGIF has received capital contributions of $700 million from ADB, ASEAN, the PRC, Japan, and the ROK.

Nishimura-a Japanese national-has extensive experience in development banking. Along with his work at EBRD, he has also held senior positions at the Japan Bank for International Cooperation. He will assume his new post in October 2011.

CGIF, which has an eight-member Board of Directors including the Chief Executive Officer and one representative from ADB, will start guarantee operations in the near future. CGIF was established in November 2010, and is a key component of the Asian Bond Markets Initiative of ADB and the ASEAN+3 cooperation.