FINANCING GROWTH AND DEVELOPMENT IN EMERGING MARKETS Maxwell Chambers, 10 October 2018 KfW-OMFIF Seminar
OVERVIEW Functioning bond markets are crucial for developing economies, helping governments finance budget deficits and address infrastructure development needs. They also provide companies and financial institutions with a sustainable source of long-term local currency funding. However, many developing economies suffer from a lack of market depth, liquidity and price transparency. This often leaves them exposed to capital outflows and dependant on foreign currency-denominated debt. Underdeveloped markets also prevent the transformation of savings into financing for the real sector, as well as local foreign direct investment. To address these issues, OMFIF and KfW hold a joint meeting in focusing on the development of local currency markets in emerging economies. The aim of the meeting is to allow informal exchanges of ideas and best practice, as well as a better appreciation of viewpoints of senior public sector and private market participants from developing economies. In particular, the meeting addresses best practice and lessons learned in Africa and Asia. The audience consists of 30 senior representatives drawn from the public sector including central banks, treasuries and issuers, as well as investors from sovereign funds and public pension funds and the private sector, such as banks, institutional investors, traders, insurance companies and other primary and secondary market participants. The meeting fosters interactive dialogue with as many of the participants contributing as possible. No media is present. MEETING AT A GLANCE 12:00 12:15 12:15 13:45 13:45 15:15 15:15 15:30 15:30 17:00 17:00 17:15 Registration Welcome address and lunch Session I: Overview of capital markets in developing economies Refreshments Session II: Deepening local currency debt markets Closing remarks, 10 October 2018 3
MEETING PROGRAMME 12:00 12:15 REGISTRATION 12:15 13:45 WELCOME ADDRESS AND LUNCH Wencai Zhang, Vice-President, Asian Development Bank 13:45 15:15 SESSION I: OVERVIEW OF CAPITAL MARKETS IN DEVELOPING ECONOMIES The rationale behind developing local capital and bond markets Identifying successful local currency markets and bond issuers Local currency bonds as an asset class The shifting tide of foreign direct investment in developing countries from US, Europe and China Session moderator: Jörg Zeuner, Chief Economist, KfW Group Panel discussion with: Zeno Abenoja, Senior Director of Economic Research, Bangko Sentral ng Pilipinas Philippe Ahoua, Acting Deputy Treasurer, International Finance Corporation Frank Scheidig, Global Head of Senior Executive Banking, DZ BANK 15:15 15:30 REFRESHMENTS 15:30 17:00 SESSION II: DEEPENING LOCAL CURRENCY DEBT MARKETS Lessons learned and best practice for developing domestic capital markets Developing partnerships between market participants, regulators and policy makers Attracting international capital and managing exchange rate risk Structuring local capital markets and debt products Session moderator: David Marsh, Chairman, OMFIF Panel discussion with: Ruurd Brouwer, Chief Executive Officer, TCX Fund Kiyoshi Nishimura, Chief Executive Officer, Credit Guarantee and Investment Facility 17:00 17:15 CLOSING REMARKS Joachim Nagel, General Manager, KfW Group 4 Financing growth and development in emerging markets
SPEAKERS ZENO ABENOJA, SENIOR DIRECTOR OF ECONOMIC RESEARCH, BANGKO SENTRAL NG PILIPINAS Zeno Abenoja is senior director of the department of economic research at the Bangko Sentral ng Pilipinas. He heads the technical staff of the advisory committee, which gives recommendations to the monetary board of the BSP. He also heads the technical staff of the open market operation strategy committee. PHILIPPE AHOUA, ACTING DEPUTY TREASURER, INTERNATIONAL FINANCE CORPORATION Philippe Ahoua is acting deputy treasurer and head of treasury client solutions at the International Finance Corporation. Before joining the IFC as a financial officer, Ahoua worked for Bank of America in Washington and the ED&F Man Group in London. RUURD BROUWER, CHIEF EXECUTIVE OFFICER, TCX FUND Ruurd Brouwer was appointed chief executive officer of TCX, a special purpose fund providing currency risk management products, in January 2015. Prior to this he held several senior management positions within FMO, the Dutch development bank. He has previously served in the United Nations Protection Force and the Dutch ministry of foreign affairs. DAVID MARSH, CHAIRMAN, OMFIF David Marsh is chairman and co-founder of OMFIF. He is former co-founder, chairman and deputy chairman of the German-British Forum. He began his career at Reuters, and between 1978-95 worked for the Financial Times in France and Germany, latterly as European editor in London., 10 October 2018 5
SPEAKERS JOACHIM NAGEL, GENERAL MANAGER, KFW GROUP Joachim Nagel is a member of the executive board of KfW, the German stateowned financing agency. Between 2010-16 he served as a member of the executive board of the Deutsche Bundesbank, including responsibility for the central bank s markets department and financial crisis management team. KIYOSHI NISHIMURA, CHIEF EXECUTIVE OFFICER, CREDIT GUARANTEE AND INVESTMENT FACILITY Kiyoshi Nishimura is the first chief executive of the Credit Guarantee and Investment Facility. In addition to serving as acting director of the European Bank for Reconstruction and Development s financial institutions business group, he has held senior positions at the Japan Bank for International Co-operation, Export- Import Bank of Japan and International Monetary Fund. FRANK SCHEIDIG, GLOBAL HEAD OF SENIOR EXECUTIVE BANKING, DZ BANK Frank Scheidig is global head of senior executive banking at DZ BANK. He was previously head of fixed income international sales at DZ BANK and a member of the board of managing directors at Deutsche Asset Management International, following posts as global head of central banks at Deutsche Bank. JÖRG ZEUNER, CHIEF ECONOMIST, KFW GROUP Jörg Zeuner became chief economist of KfW, the state-owned German financing agency, in September 2012. He previously worked at the International Monetary Fund for almost 10 years before becoming chief economist at VP Bank in Liechtenstein in 2008. He also has experience with the Korean-German Chamber of Commerce and World Bank in Ethiopia. 6 Financing growth and development in emerging markets
SPEAKERS WENCAI ZHANG, VICE-PRESIDENT, ASIAN DEVELOPMENT BANK Wencai Zhang is vice-president of the Asian Development Bank, responsible for operations in the South Asia and Central and West Asia departments. Before joining the ADB in 2013, he was director general of the department of external economic co-operation at the ministry of finance of the People s Republic of China., 10 October 2018 7
ATTENDEES Zeno Abenoja Director Bangko Sentral ng Pilipinas Philippines Bjoern Griesbach Senior Portfolio Manager Swiss National Bank Philippe Ahoua Acting Deputy Treasurer and Head of Treasury Client Solutions International Finance Corporation Theo Brockmann Global Head of Capital Markets Institutional Clients DZ BANK Germany Jonathan Piers Grosvenor Adviser, Office of the Treasurer and Head Treasury Client Solutions Asian Development Bank Philippines Giichiro Hattori Representative Nippon Export and Investment Insurance Japan Ruurd Brouwer Chief Executive Officer TCX Fund Netherlands Budianto Budianto Executive Director Information System Transformation Task Force Bank Indonesia Indonesia Chen Chen Senior Adviser to Vice-President Asian Development Bank Philippines Christian Jack Second Secretary, Economics Australian High Commission Praful Katta Deputy Portfolio Manager, Liquid Assets Management International Finance Corporation Wolfgang Koehler Member of the Board of Managing Directors DZ BANK Germany Adam Cotter Head of Asia and Chief Representative OMFIF Petra Kotte Senior Director, Financial Institutions and German Business DEG Invest Germany Jean-Philippe Filhol Project Director Business Council for Sustainable Development David Marsh Chairman OMFIF United Kingdom 8 Financing growth and development in emerging markets
ATTENDEES Lionel Chee Lee Min Senior Consultant China Construction Bank Jörg Zeuner Chief Director Economist KfW Development Bank Germany Louis de Montpellier Senior Managing Director and Global Head Official Institutions Group State Street Global Advisors United Kingdom Joachim Nagel General Manager KfW Development Bank Germany Yi Zhang Head, Operation Management Industrial and Commercial Bank of China Wencai Zhang Vice-President Asian Development Bank Philippines Stephen Ng Chief Executive Officer China International Capital Corporation Anna Li San Ng Country Officer, International Finance Corporation Kiyoshi Nishimura Chief Executive Officer Credit Guarantee and Investment Facility Philippines Frank Scheidig Global Head of Senior Executive Banking DZ BANK Germany Desmond Jun Yuan Tan Assistant Vice-President China Construction Bank, 10 October 2018 9
NOTES 10 Financing growth and development in emerging markets
NOTES, 10 October 2018 11
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