The “Belt and Road” initiative of China is expected to boost the financial sector of the ASEAN region. The endeavor can also help the Philippines identify brand new opportunities that can be used to put together a better pipeline for infrastructure financing. The investment totals roughly $240 billion within the next few years.
Part of the investment comes through a $40 billion Silk Road Fund, as well as the newly launched $100-billion Asian Infrastructure Investment Bank. The effect of this new AIIB, among other issuers, in tapping local markets for the “Belt and Road” relating financing will be the widening of the local credit universe. Global investor attention is expected to be attracted, expanding corporate access to long-term capital within the region.
