Bond Pricing Agency Malaysia (BPAM) announces the launch of the new ASEAN3 Government Bond Indices (A3GBI). Created in partnership with Indonesia Bond Pricing Agency (IBPA) and The Thai Bond Market Association (ThaiBMA), this represents the first time such collaboration has taken place in the history of ASEAN.
Meor Amri Meor Ayob, Chief Executive office of BPAM says, “The experience of building the A3GBI was a valuable opportunity for all three countries to develop their bond data and analytical capabilities. It is BPAM’s intention to continue to be a leader in the region and the A3GBI marks the first step in our ambition to build more cross-border products with our ASEAN neighbours.” He adds that this will improve access to bonds in the ASEAN region and help boost growth as member countries have various levels of economic development.
Wahyu Trenggono, IBPA Director says, “This partnership will be able to attract more international investors. They have lots of funds and this joint effort will attract them once they see the benefits.” ThaiBMA’s Head of Pricing and Product Development Department Kulkunya Prayarach adds, “This stepping stone will set the benchmark for markets in the future.”
Unlike other indexes, The A3GBI is designed to track the performance of local currency denominated government bonds in Ringgit, Rupiah and Baht as well as the top 5 on-the-run government bonds. The price source is also from Independent Bond Pricing Providers which are IBPA, ThaiBMA and BPAM.
Meanwhile, Shah Zain, Chief Business Officer BPAM hopes with this launch, other ASEAN countries will join in, with the hopes of the Philippines coming in next year.