Asian Development Bank to create infrastructure debt fund

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Asian Development Bank to create infrastructure debt fund

Asian Development Bank's Managing Director General, Rajat M Nag, said on Wednesday in India that the bank it is planning to set up Asia Pacific Infrastructure Fund focussed on financing projects in the region.

Rajat M Nag said:

"We are now looking at a Asia Pacific Infrastructure Fund basically for infrastructure investment in Asia-pacific. It is still in making. We are still working on it."

The fund would invest in debt for infrastructure projects like transport, electricity, water supply and sanitation.

He said that the idea is to make the fund attractive enough for countries in the region to join, other bilateral funding agency and developed country to make equity participation in the fund. Over time this fund could issue dollar denominated bonds in its own name, he said.

Talking about India growth stroy, Nag said:

"Worst is behind us. We do see some positive things happened recently."

Recently, ADB aggreed to provide loan of $2 billion annually for five years till 2017 to India to create jobs, enhance investment reforms, and improve infrastructure.

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