Asian Development Bank and Clifford Chance
(Thailand) Ltd. www.adb.org
Country of implementation: Lao PDR and Thailand
This cross-border bond project aims to facilitate Lao PDR's debut in offshore market in order to access an alternative funding source, by issuing Thai Baht denominated asset-backed securities in Thailand. The bond will be secured by the future royalty fee receivables which will be earned based on the electricity produced by existing hydropower dams in Lao PDR that sell electricity to Thailand. If structured properly, Lao PDR can benefit from attractive terms which are incomparable to those of traditional commercial borrowing. The bond proceeds will be utilized to finance infrastructure projects to achieve Lao PDR's economic development and poverty reduction.