Government-backed development banks of Japan, China and South Korea have signed an agreement with public and private financial institutions in Southeast Asia to meet increasing demand for infrastructure projects in the fast-growing region.
The Japan Bank for International Cooperation, the China Development Bank and the Korea Development Bank have established the ASEAN-plus-Three Inter-Bank Cooperation Mechanism in response to the strong financial need in the Association of Southeast Asian Nations, according to the JBIC.
The program aims to "provide financial support based on the global standards such as openness, transparency, economic viability, debt sustainability, and compliance with laws and regulations for the development of the region," the JBIC said.
"Such financial support will benefit the country where the project is located and the origination of bankable projects, and thus lead to sound development of the entire region," it said.
Such assistance would also promote economic integration and connectivity in the 10-member ASEAN.
The agreement was struck on the sidelines of a summit involving leaders of Japan, China, South Korea and ASEAN in November on the outskirts of Bangkok.
ASEAN participants in the project are PT Bank Mandiri (Persero) Tbk. of Indonesia, Canadia Bank PLC of Cambodia, DBS Bank Ltd. of Singapore, Kasikornbank Public Co. of Thailand, CIMB Group Sdn Bhd of Malaysia, Myanma Foreign Trade Bank of Myanmar, BDO Unibank Inc. of the Philippines, Bank Islam Brunei Darussalam Berhad of Brunei, Joint Stock Commercial Bank for Investment and Development of Vietnam, and Lao Development Bank of Laos.