$'%

1(:6)5207+($6,$1'(9(/230(17%$1. 'HFHPEHU

&RUSRUDWH,VVXDQFH'ULYHV
/RFDO%RQG0DUNHWVWR7

$
UDSLGULVHRIFRUSRUDWHERQGLVVXDQFHLQHPHUJLQJ(DVW
$VLDKDVGULYHQWKHJURZWKLQWKHUHJLRQ·VORFDOFXUUHQF\
ERQGPDUNHWVWRMXVWRYHUWULOOLRQ
7KHODWHVWHGLWLRQRI$'%·VTXDUWHUO\Asia Bond MonitorVKRZV
WKHUHZHUHWULOOLRQLQFRUSRUDWHERQGVRXWVWDQGLQJDWWKH
HQGRI6HSWHPEHUPRUHLQORFDOFXUUHQF\WHUPVWKDQD
\HDUHDUOLHUDQGPRUHWKDQDWWKHHQGRI-XQH
´&RPSDQLHVDUHWDNLQJWKHRSSRUWXQLW\WRUDLVHPRQH\LQ
$VLD·VORFDOFXUUHQF\ERQGPDUNHWVEHFDXVHRIWKHJURZLQJGH
PDQGIURPLQYHVWRUVSDUWLFXODUO\RYHUVHDVLQYHVWRUVµVDLG,ZDQ
$]LVKHDGRI$'%·V2IILFHRI5HJLRQDO(FRQRPLF,QWHJUDWLRQ
ZKLFK SURGXFHG WKH UHSRUW ´)RUHLJQ LQWHUHVW KDV ULVHQ JLYHQ
$VLD·V IDYRUDEOH JURZWK IXQGDPHQWDOV ORZHU LQWHUHVW UDWHV LQ
PDWXUHPDUNHWVDQGGHVSLWHDGPLQLVWUDWLYHPHDVXUHVLQVRPH
FRXQWULHVWROLPLWFDSLWDOLQIORZVµ
/RFDO FXUUHQF\ JRYHUQPHQW ERQGV LQ HPHUJLQJ (DVW $VLD
$)3

WRWDOHG  WULOOLRQ  KLJKHU \HDURQ\HDU DQG 

KLJKHUTXDUWHURQTXDUWHU7KHVORZHUJURZWKFDPHZLWKPDQ\ $VLDDQGWKH3DFLILFLVKRPHWRWZRWKLUGVRIWKHZRUOG·VSRRUSHRSOH7KHLUOLYHOLKRRG
GHSHQGVRQFOLPDWHVHQVLWLYHVHFWRUVVXFKDVDJULFXOWXUHIRUHVWU\DQGWUDGLWLRQDOILVKLQJ
FRXQWULHVQRZSDULQJWKHLUILVFDOVWLPXOXVSDFNDJHVDQGZLWKVRPH
FHQWUDOEDQNVRSWLQJWRVORZVWHULOL]LQJERQGVDOHV
(PHUJLQJ (DVW $VLD FRPSULVHV WKH 3HRSOH·V 5HSXEOLF RI
&KLQD35&+RQJ.RQJ&KLQD,QGRQHVLD5HSXEOLFRI.RUHD
0DOD\VLD3KLOLSSLQHV6LQJDSRUH7KDLODQGDQG9LHW1DP
$'%&DOOVIRU&23&OLPDWH
&RQWLQXHGRQSDJH &KDQJH7DONVWR(PSKDVL]H
3RYHUW\5HGXFWLRQ
$'%WR,QYHVWLQ,WV)LUVW)XQG
'
HOHJDWHV JDWKHULQJ IRU WKH 8QLWHG 3UHXVV VDLG LQ 1HZ 'HOKL ,QGLD RQ WKH
RQ:DWHU,QIUDVWUXFWXUHLQ$VLD 1DWLRQVFOLPDWHWDONVLQ0H[LFRLQ
'HFHPEHUPXVWFRQVLGHUWKHGLV
HYH RI WKH 81 )UDPHZRUN &RQYHQWLRQ
RQ&OLPDWH&KDQJH&23QHJRWLDWLRQV

$
SURSRUWLRQDWHLPSDFWWKDWFOLPDWHFKDQJH LQ&DQFXQ´1HJRWLDWRUVLQ0H[LFRPXVW
'%LVLQYHVWLQJXSWRPLOOLRQLQWKH$VLD:DWHU)XQG³
KDVRQSRRUSHRSOHLQWKHLUQHJRWLDWLRQVRQ UHFRJQL]HWKDWFOLPDWHFKDQJHDJJUDYDWHV
LWV ILUVWHYHU LQYHVWPHQW LQ D SULYDWH HTXLW\ IXQG VROHO\
DVXFFHVVRUWRWKH.\RWR3URWRFRODUUDQJH WKHSOLJKWRIWKHSRRUDQGZRUNWRHQVXUH
IRFXVHGRQVXSSRUWLQJWKHGHYHORSPHQWRIZDWHUUHODWHG
PHQWVVDLG$'%9LFH3UHVLGHQW8UVXOD WKDWSRYHUW\UHGXFWLRQLVFHQWUDOWRDSRVW
LQIUDVWUXFWXUHLQWKHUHJLRQ
6FKDHIHU3UHXVV .\RWRDJUHHPHQWµ
&RQWLQXHGRQSDJH ´3RYHUW\LVLQH[WULFDEO\OLQNHGZLWKHQ $VLDDQGWKH3DFLILFLVKRPHWRWZR
YLURQPHQWDOLVVXHVDQGFOLPDWHFKDQJHLV WKLUGVRIWKHZRUOG·VSRRUSHRSOH7KHLU
PDNLQJWKHVLWXDWLRQZRUVHµ0V6FKDHIHU OLYHOLKRRGV GHSHQG RQ FOLPDWHVHQVLWLYH

:KDW
V,QVLGH
)DUPLQJ6PDUWHU
$LGHGE\LQYHVWPHQWVLQVNLOOWUDQVIHUVLUULJDWLRQDQGURDG
XSJUDGHVYLOODJHUVLQWKH/DRKLJKODQGVQRZKDYHWKHNQRZOHGJH
WRLPSURYHWKHLUIDUPLQJDQGPDUNHWLQJWHFKQLTXHVFRQQHFWLQJ
WKHPWRPDUNHWVDVIDUDZD\DV-DSDQ5HDGWKHVWRU\RQSDJH
&RQWLQXHGRQSDJH
,17+,6,668(
7231(:6$'%·V&OHDQ$LU6FRUHFDUGWR+HOS$VLD5HGXFH$LU3ROOXWLRQ63((&+6XVWDLQDEOH*URZWK7KH
9LHZIURP$VLD)($785(/DR3'5)DUPLQJ6PDUWHU352-(&76%DQJODGHVK
*HWV0IRU%ULGJH3URMHFW0/RDQWR,PSURYH8UEDQ3ODQQLQJ6HUYLFHV
LQ'KDNDDQG.KXOQD05XUDO,QIUDVWUXFWXUH3URMHFWWR6SXU*URZWK$'%
([WHQGV0IRU+LJKZD\2YHUKDXOLQ,QGLD·V.DUQDWDND6WDWH$'%WR+HOS
35&·V6PDOOHU&LWLHV6ZLWFKWR1DWXUDO*DV6DYH(QHUJ\0,QYHVWPHQWWR+HOS
31*$GGUHVV&ULWLFDO*DSVLQ3RZHU6XSSO\$'%6LJQV-RLQW9HQWXUH$JUHHPHQWWR
'HYHORS5HQHZDEOH(QHUJ\LQ,QGLD5(*8/$56(&7,2163XEOLFDWLRQV(YHQWV
2SSRUWXQLWLHV2SHUDWLRQV8SGDWHV
1(:6
$'%&DOOVIRU«&RQWLQXHGIURPSDJH
VHFWRUVVXFKDVDJULFXOWXUHIRUHVWU\DQGWUDGL
WLRQDO ILVKLQJ ZKLFK EHDU WKH EUXQW RI FOLPDWH
FKDQJHHIIHFWVVXFKDVIORRGLQJGURXJKWULVLQJ
VHDOHYHOVDQGH[WUHPHZHDWKHUHYHQWV
,QWKHSDVWGHFDGHVWKHUHJLRQ·VERRPLQJ
HFRQRPLHVDQGUDSLGLQGXVWULDOH[SDQVLRQKDYH
OLIWHGKXQGUHGVRIPLOOLRQVRXWRISRYHUW\EXWWKLV
SURJUHVVKDVH[DFWHGDKHDY\HQYLURQPHQWDOWROO
0RUH WKDQ KDOI RI WKH UHJLRQ·V SRRU OLYH LQ
HQYLURQPHQWDOO\GHJUDGHGDUHDVZKHUHGHFOLQLQJ
IDUPDQGFRDVWDOSURGXFWLYLW\QRZWKUHDWHQEDVLF
OLYHOLKRRGV7KLVLQWXUQLVIRUFLQJDPDVVPLJUD
WLRQLQWRXUEDQVOXPVWKDWDUHSROOXWHGFRQJHVWHG
DQGYXOQHUDEOHWRQDWXUDODQGPDQPDGHGLVDVWHUV
6SHDNLQJ DW DQ LQWHUQDWLRQDO FRQIHUHQFH LQ
1HZ'HOKL0V6FKDHIHU3UHXVVDOVRFDOOHGIRU
FRXQWULHVLQ$VLDDQGWKH3DFLILFWRUHFRJQL]HWKDW
FRQWLQXHGJURZWKDQGHQYLURQPHQWDOVXVWDLQDELO
LW\FDQJRKDQGLQKDQG
´:KLOHWDFNOLQJWKHSUREOHPRIHQYLURQPHQWDO
GHJUDGDWLRQJRYHUQPHQWVDQGLQWHUQDWLRQDODJHQ
FLHVPXVWFROODERUDWHZLWKWKHSULYDWHVHFWRUWR
FUHDWHJUHHQMREVDQGQHZOLYHOLKRRGRSSRUWXQLWLHV
IRU WKH XUEDQ DQG UXUDO SRRUµ 0V 6FKDHIHU
3UHXVVVDLG
´*UHHQ WHFKQRORJLHV EHLQJ GHYHORSHG DQG
GHSOR\HGWRWDFNOHFOLPDWHFKDQJHFRXOGEHKDU
QHVVHGWRSURGXFHWKHWULSOHEHQHILWRIUHGXFLQJ
SRYHUW\DGGUHVVLQJFOLPDWHFKDQJHDQGSURWHFWLQJ
WKHHQYLURQPHQWDQGFOHDQLQJSROOXWHGDUHDVµ
7KH 1HZ 'HOKL HYHQW 7KH (QYLURQPHQWV
RI WKH 3RRU LQ WKH &RQWH[W RI &OLPDWH &KDQJH DQGGHYHORSPHQWSDUWQHUVRQ²1RYHPEHU
DQG WKH *UHHQ (FRQRP\ 0DNLQJ 6XVWDLQDEOH DQGJDWKHUHGDERXWH[SHUWVIURPWKHJRYHUQ
'HYHORSPHQW,QFOXVLYHZDVRUJDQL]HGE\$'% PHQWSULYDWHVHFWRUDQGWKLQNWDQNV„

$'%WR,QYHVW«&RQWLQXHGIURPSDJH
7KH$'%%RDUGRI'LUHFWRUVDSSURYHGWKH JRYHUQDQFH DQG ILQDQFLDO PDQDJHPHQW VWDQG
HTXLW\LQYHVWPHQWLQWKH$VLD:DWHU)XQGZKLFK DUGVDQGE\VHHNLQJDPDMRULW\RZQHUVKLSVWDNH
ZLOOLQYHVWLQZDWHUDQGZDVWHZDWHUDVVHWVLQWKH LQHDFKLQYHVWPHQWµVDLG06KLQ.LPKHDGRI
3HRSOH·V 5HSXEOLF RI &KLQD 35& DQG DFURVV
6RXWKHDVW$VLD
´%\ WDNLQJ SDUW LQ WKH IXQG $'% ZLOO
FDWDO\]HPRUHSULYDWHLQYHVWPHQWLQPDLQVWUHDP
ZDWHUVHFWRUGHYHORSPHQWLQ$VLDZKLFKLQWXUQ
ZLOO KHOS VSXU VXVWDLQDEOH JURZWK DQG LPSURYH
OLYLQJVWDQGDUGVLQWKHUHJLRQµVDLG5REHUWYDQ
=ZLHWHQGLUHFWRURI$'%·V3ULYDWH6HFWRU2SHUD
WLRQV'HSDUWPHQW
)UHVK ZDWHU VWRFNV DURXQG WKH ZRUOG DUH
XQGHUVLHJHIURPDJURZLQJSRSXODWLRQLQGXVWUL
DOL]DWLRQ DQG XUEDQL]DWLRQ FKDQJLQJ IRRG FRQ
VXPSWLRQSDWWHUQVSROOXWLRQDQGFOLPDWHFKDQJH
,Q$VLDDERXWKDOIDELOOLRQSHRSOHVWLOOODFNDFFHVV
WRSRWDEOHZDWHUDQGELOOLRQDUHZLWKRXWDFFHVV
WRGHFHQWVDQLWDWLRQ:LWKJOREDOGHPDQGIRUZDWHU
H[SHFWHGWRGRXEOHHYHU\\HDUVWKHUHLVDFULWL
FDOQHHGIRUQHZLQIUDVWUXFWXUH$VWXG\E\$'%
DQGLWVSDUWQHUVHVWLPDWHVWKDWDERXWELOOLRQLQ
LQYHVWPHQWVDUHQHHGHGHYHU\\HDUWRPHHWWKH
0LOOHQQLXP 'HYHORSPHQW *RDO WDUJHWV IRU VDIH
GULQNLQJ ZDWHU DQG VDQLWDWLRQ LQ $VLD DQG WKH
3DFLILFRYHUWKHQH[WGHFDGH
7KH $VLD :DWHU )XQG ZLOO EH RZQHG E\ D
VXEVLGLDU\ RI WKH $P,QYHVWPHQW *URXS ZKLFK
KDVDWUDFNUHFRUGLQSULYDWHHTXLW\LQYHVWPHQWV
RIPRUHWKDQ\HDUV,WZLOOWDUJHWLQYHVWPHQWVLQ
PXQLFLSDOLQGXVWULDODQGUXUDOZDWHUDQGZDVWH
ZDWHUWUHDWPHQWSODQWVDQGZDWHUUHKDELOLWDWLRQ
$ERXWRILWVSRUWIROLRZLOOEHLQWKH35&DQG
WKHUHVWLQ6RXWKHDVW$VLD
7KHWDUJHWIXQGVL]HLVPLOOLRQZLWKDQ
DQWLFLSDWHGILUVWFORVLQJRIPLOOLRQWKLV\HDU
,WZLOOLQMHFWDURXQGPLOOLRQWRPLOOLRQSHU
LQYHVWPHQW
´7KHIXQGZLOODLPWRPLWLJDWHULVNVWKURXJK
JHRJUDSKLFDQGVHFWRUSRUWIROLRGLYHUVLILFDWLRQ
E\ FRQWUDFWLQJ UHSXWDEOH HQJLQHHULQJ JURXSV
E\LQYHVWLQJLQFRPSDQLHVZLWKKLJKFRUSRUDWH
 'HFHPEHU
3ULYDWH(TXLW\LQ$'%·V3ULYDWH6HFWRU2SHUD
WLRQV'HSDUWPHQW
,WZLOOVHHNRXWSURMHFWVWKDWHQJDJHHQJLQHHU
LQJFRPSDQLHVZLWKDVWURQJWUDFNUHFRUGLQWKH
VHFWRUDQGDZLOOLQJQHVVWRLQYHVWWKHLURZQHTXLW\
KHOSLQJ WR JHQHUDWH VWURQJ UHWXUQV DQG JUHDWHU
SULYDWH VHFWRU SDUWLFLSDWLRQ 7KH RSSRUWXQLW\
IRU LQFUHDVHG SULYDWH LQYROYHPHQW LQ ZDWHU KDV
LQFUHDVHGRYHUWKHSDVW\HDUVZLWKJRYHUQPHQW
ILQDQFHV VWUDLQHG E\ WKH JOREDO FULVLV DQG WKH
UHJXODWRU\HQYLURQPHQWLQ$VLDJUDGXDOO\PRYLQJ
WRZDUG IXOOFRVW UHFRYHU\ PDNLQJ VXFK LQYHVW
PHQWVPRUHFRVWHIIHFWLYH
´3ULYDWHZDWHULQYHVWPHQWVZLOOKHOSDOOHYLDWH
$VLD·V LPSHQGLQJ ZDWHU FULVLV ZKLOH PDNLQJ D
VXVWDLQDEOHUHWXUQWRLQYHVWRUVFUHDWHDZLQZLQ
VROXWLRQIRUDOOVWDNHKROGHUVµ0U.LPDGGHG
$'%·V LQYHVWPHQW ZLOO EH NHSW DW D OHYHO
WKDW HQVXUHV LW GRHV QRW H[FHHG D  VWDNH LQ
WKHIXQGRUEHFRPHWKHODUJHVWVWDNHKROGHU7KH
$)3
,QWHUQDWLRQDO)LQDQFH&RUSRUDWLRQKDVDOVRFRP $IDUPHUDQGKLVZLIHIHWFKZDWHUIURPDUHVHUYRLULQ
PLWWHGWRLQYHVWXSWRPLOOLRQ7KHIXQGZLOO <XQQDQSURYLQFHRIWKH3HRSOH·V5HSXEOLFRI&KLQD
KDYHD\HDUOLIHZLWKWZR\HDUH[WHQVLRQV $ERXWRIWKH$VLD:DWHU)XQG·VSRUWIROLRZLOOEH
IRUGLYHVWPHQW„ LQWKH35&
3ULYDWHZDWHULQYHVWPHQWVZLOOKHOSDOOHYLDWH
$VLD·V LPSHQGLQJ ZDWHU FULVLV ZKLOH PDNLQJ D
VXVWDLQDEOHUHWXUQWRLQYHVWRUVFUHDWHDZLQZLQ
VROXWLRQIRUDOOVWDNHKROGHUV
06KLQ.LP
+HDGRI3ULYDWH(TXLW\
$'%·V3ULYDWH6HFWRU
2SHUDWLRQV'HSDUWPHQW

$'%·V&OHDQ$LU6FRUHFDUGWR+HOS
$VLD5HGXFH$LU3ROOXWLRQ
$
VLDDQGWKH3DFLILFPXVWZRUNKDUGHUWR
DGGUHVV DLU SROOXWLRQ DORQJVLGH EURDGHU
HIIRUWVWRFRXQWHUFOLPDWHFKDQJHDQGD
QHZ&OHDQ$LU6FRUHFDUGGHYHORSHGE\$'%ZLOO
KHOSWKHUHJLRQGRWKDW
´:HWKLQNLW·VFULWLFDOWRKDYHDFRPSUHKHQVLYH
DLUTXDOLW\PHDVXUHWRDOORZJRYHUQPHQWVWRMXGJH
KRZEHVWWRWDFNOHDLUSROOXWLRQDQGJUHHQKRXVH
JDVHPLVVLRQVµVDLG1HVVLP-$KPDGGLUHFWRU
RI$'%·V(QYLURQPHQWDQG6DIHJXDUGV'LYLVLRQ
´$QGZRUNLQJWRLPSURYHDLUTXDOLW\ZLOOEHQHILW
HYHU\RQH·VKHDOWKDQGSURGXFWLYLW\HVSHFLDOO\WKDW
RIWKHSRRUZKRDUHPRVWH[SRVHGWRSROOXWLRQµ
7KH&OHDQ$LU6FRUHFDUGGHYHORSHGE\$'%
WKURXJKWKH&OHDQ$LU,QLWLDWLYHIRU$VLDQ&LWLHV
1(:6
LQGH[HVWKH$LU3ROOXWLRQDQG+HDOWK,QGH[WKH
&OHDQ$LU0DQDJHPHQW&DSDFLW\,QGH[DQGWKH
&OHDQ$LU3ROLFLHVDQG$FWLRQV,QGH[
:KLOHDQXPEHURILQGH[HVRQDLUTXDOLW\DQG
HQYLURQPHQWDO SHUIRUPDQFH DOUHDG\ H[LVW WKH
VFRUHFDUGLVWKHILUVWWRROWKDWJLYHVDFRPSUHKHQ
VLYHDVVHVVPHQWRIPDQDJHPHQWRISROOXWDQWVDQG
JUHHQKRXVHJDVHPLVVLRQVE\FRXQWULHVDQGFLWLHV
7KH &OHDQ $LU 6FRUHFDUG KDV EHHQ SLORWHG
LQWKHFLWLHVRI%DQJNRN7KDLODQG-DNDUWD,Q
GRQHVLDDQG0DQLOD3KLOLSSLQHV7KH&$,$VLD
&HQWHULVUROOLQJLWRXWIRUXVHHOVHZKHUHLQ$VLD
LQFOXGLQJLQWKH3HRSOH·V5HSXEOLFRI&KLQD
´)DLOLQJWRFRQWURODLUSROOXWLRQDQGJUHHQKRXVH
JDV HPLVVLRQV ZLOO VSHOO GLVDVWHU IRU WKH UHJLRQ
$)3
&HQWHU &$,$VLD JLYHV DQ RYHUDOO FOHDQ DLU SXWWLQJDWULVNWKHKHDOWKRIWKRVHOLYLQJKHUHDQG 7KH&OHDQ$LU6FRUHFDUGZLOOKHOSFRXQWULHVLQWKH
VFRUHUDQJLQJIURP]HURWKHORZHVWJUDGHWRD WKH HFRQRPLF JURZWK RI $VLD DQG WKH 3DFLILFµ UHJLRQDVVHVVWKHLUPDQDJHPHQWRISROOXWDQWVDQG
PD[LPXPRI,WFRPSULVHVWKUHHLQGLYLGXDO -LWHQGUD 6KDK DGYLVRU DW $'%·V 5HJLRQDO DQG JUHHQKRXVHJDVHPLVVLRQV

6XVWDLQDEOH 'HYHORSPHQW 'HSDUWPHQW WROG

:HWKLQNLW·VFULWLFDOWRKDYHDFRPSUHKHQVLYH WKH%HWWHU$LU4XDOLW\&RQIHUHQFH%$4
FRQIHUHQFHLQ6LQJDSRUHODVWPRQWK
DLUTXDOLW\PHDVXUHWRDOORZJRYHUQPHQWVWRMXGJH 7KH FRQIHUHQFH ZLWK WKH WKHPH ´$LU
4XDOLW\LQD&KDQJLQJ&OLPDWHµZDVRUJDQL]HG
KRZEHVWWRWDFNOHDLUSROOXWLRQDQGJUHHQKRXVH E\ &$,$VLD LQ SDUWQHUVKLS ZLWK WKH 1DWLRQDO
(QYLURQPHQW $JHQF\ RI 6LQJDSRUH WKH /DQG
JDVHPLVVLRQV 7UDQVSRUW$XWKRULW\RI6LQJDSRUHWKH6LQJDSRUH
1HVVLP-$KPDG ([KLELWLRQ DQG &RQYHQWLRQ %XUHDX $'% DQG
'LUHFWRURI$'%·V(QYLURQPHQWDQG WKH:RUOG%DQN$ERXWSHRSOHDWWHQGHGWKH
6DIHJXDUGV'LYLVLRQ HYHQWIURPDURXQGWKHUHJLRQWRGLVFXVVKRZWR
LPSURYHDLUTXDOLW\„

&RUSRUDWH,VVXDQFH«&RQWLQXHGIURPSDJH
7KHIDVWHVWJURZLQJFRUSRUDWHERQGPDUNHWVDW
WKHHQGRI6HSWHPEHUZHUHWKH35&DQG,QGRQHVLD
ERWKRIZKLFKJUHZRQDTXDUWHURQTXDUWHU
EDVLV IROORZHG E\ 6LQJDSRUH·V FRUSRUDWH ERQG
PDUNHW ZKLFK JUHZ  *URZWK RI WKH 35&
PDUNHWUHIOHFWHGWKHVWUHQJWKRIWKHPHGLXPWHUP
QRWHDQGFRPPHUFLDOSDSHUPDUNHWVFRXSOHGZLWK
DUHFRYHU\LQLVVXDQFHE\VWDWHRZQHGHQWHUSULVHV
*URZWKLQWKH,QGRQHVLDQDQG6LQJDSRUHDQ
FRUSRUDWHPDUNHWVUHIOHFWHGJURZLQJLQWHUHVWE\
IRUHLJQLQYHVWPHQWIXQGVLQWKHVHPDUNHWVZKLFK
KDVKHOSHGLPSURYHWKHOLTXLGLW\WKLV\HDU
´:KDWZHDUHVHHLQJLVDIXQGDPHQWDOFKDQJH
LQWKHLQYHVWRUPDNHXSLQHPHUJLQJ(DVW$VLD·V
+DYLQJ QRZ EHFRPH IDPLOLDU ZLWK WKHVH
PDUNHWVIRUHLJQLQYHVWRUVDUHOLNHO\WRVHHWKHP
DVDFRUHSDUWRIWKHLUSRUWIROLRV
ERQG PDUNHWV +DYLQJ QRZ EHFRPH IDPLOLDU
ZLWKWKHVHPDUNHWVIRUHLJQLQYHVWRUVDUHOLNHO\
WR VHH WKHP DV D FRUH SDUW RI WKHLU SRUWIROLRVµ
VDLG0U$]LV
7KH$QQXDO%RQG0DUNHW/LTXLGLW\6XUYH\
FRQGXFWHGE\$VLDQ%RQGV2QOLQHDQGUHOHDVHGZLWK
WKHTXDUWHUO\$VLD%RQG0RQLWRUVKRZHGOLTXLGLW\
LQHPHUJLQJ(DVW$VLD·VERQGPDUNHWVFRQWLQXHV
WRLQFUHDVHGXHWRULVLQJIRUHLJQLQYHVWRULQWHUHVW
LQWKHPDUNHWVDQGLQFUHDVLQJLQYHVWRUGLYHUVLW\
(IIRUWV WR FRQVROLGDWH ERQG LVVXHV DQG
LQFUHDVHWKHVL]HRIEHQFKPDUNRIIHULQJVLQWKH
5HSXEOLFRI.RUHDWKH3KLOLSSLQHVDQG6LQJDSRUH
DOVRKHOSHG
,ZDQ$]LV
+HDGRI$'%·V2IILFHRI5HJLRQDO
(FRQRPLF,QWHJUDWLRQ
"4*"
#0
/%
129(0
.0/*5
%(5

03
7KH VXUYH\ RI  UHVSRQGHQWV FRQGXFWHG
IURPPLG$XJXVWWRPLG2FWREHUVKRZHGPDUNHW
SOD\HUVDFURVVWKHUHJLRQVWLOOVHHJUHDWHULQYHVWRU
DQGWUDGHUGLYHUVLW\DVWKHPRVWLPSRUWDQWLVVXH
WRLQFUHDVHOLTXLGLW\7KHDYDLODELOLW\RIKHGJLQJ
PHFKDQLVPVIRUHLJQH[FKDQJHUHJXODWLRQVDQG
PDUNHWDFFHVVZHUHDOVRGHHPHGLPSRUWDQW
)RU WKH FRUSRUDWH ERQG PDUNHWV VXUYH\
SDUWLFLSDQWVVDLGLVVXHVWKDWQHHGHGWREHWDFNOHG
ZHUHLQYHVWRUGLYHUVLW\WD[WUHDWPHQWDQGKHGJLQJ
PHFKDQLVPV„
'RZQORDG WKH UHSRUW DW ZZZDVLDQERQGVRQOLQHDGE
RUJGRFXPHQWVDEPBQRYBSGI
'HFHPEHU 
63((&+

6XVWDLQDEOH*URZWK7KH9LHZIURP$VLD
7KHIROORZLQJH[FHUSWLVIURPWKHVSHHFKGHOLYHUHGE\$'%3UHVLGHQW+DUXKLNR.XURGDDWWKH,QWHUQDWLRQDO3ROLF\$GYLVRU\
*URXS*)DFLQJWKH,PPHGLDWH%LJ,VVXHVIRU*OREDO5HFRYHU\LQ6HRXO5HSXEOLFRI.RUHDRQ1RYHPEHU

,QWURGXFWLRQ

3URIHVVRU6DFKVKDVGRQHDQH[FHOOHQWMRE
RI KLJKOLJKWLQJ WKH LPPHGLDWH HFRQRPLF
LVVXHVIDFLQJDOORIXVDVZHPRYHEH\RQG
FULVLVLQWRJOREDOUHFRYHU\,DPSOHDVHGWR
QRWHWKDWJRYHUQPHQWVDFURVV$VLDDQGWKH
3DFLILF DUH GRLQJ WKHLU EHVW WR FRQWULEXWH
WR WKH JOREDO UHFRYHU\ ZKLOH WDFNOLQJ WKH
SUHVVLQJLVVXHVRIFXUUHQF\FDSLWDOIORZV
DQGJOREDOLPEDODQFHV
0\WRSLFWKLVPRUQLQJEXLOGVRQWKHVH
LVVXHV +RZ FDQ ZH HIIHFWLYHO\ VXVWDLQ
JURZWK LQ GHYHORSLQJ $VLD" 7KH UHJLRQ
PXVW FRQWLQXH ZLWK UDSLG HFRQRPLF
JURZWK³EXW JURZWK WKDW LV VXVWDLQDEOH
LQFOXVLYHDQGHQYLURQPHQWDOO\VRXQGZLWK
SRYHUW\ UHGXFWLRQ D FHQWUDO SULRULW\ 7R
DFFRPSOLVKWKLVKRZHYHUZHPXVWNHHSRXU
UHVRXUFHV³ZKHWKHUQDWXUDOHQYLURQPHQWDO
HFRQRPLFRUKXPDQ³LQEDODQFH7KHVHDUH
WKHGDXQWLQJFKDOOHQJHVDKHDG
%HIRUHWXUQLQJWRWKHHVVHQWLDOHOHPHQWV
RI VXVWDLQHG JURZWK LQ GHYHORSLQJ $VLD
OHWPHSURYLGHDEULHIHFRQRPLFRYHUYLHZ
IRUGHYHORSLQJ$VLD

(FRQRPLF2XWORRNIRU'HYHORSLQJ$VLD
DQG5LVNV

'HYHORSLQJ$VLDUHERXQGHGIURPWKHJOREDO
FULVLVZLWKDVSHHGDQGYLJRUWKDWVXUSULVHG
PDQ\³ HYHQ ZLWKLQ RXU RZQ UHJLRQ
(ULF6DOHV

(PHUJLQJ$VLDEHFDPHDQHQJLQHRIJOREDO
UHFRYHU\7KLVLVLQSDUWGXHWRWKHUHIRUPV
XQGHUWDNHQVLQFHWKH$VLDQILQDQ
FLDOFULVLV³SULPDULO\VWURQJILVFDOFRQVROLGD
WLRQILQDQFLDOUHVWUXFWXULQJDQGPRQHWDU\
SUXGHQFH$SSURSULDWHVWLPXOXVPHDVXUHV
NHSW GRPHVWLF GHPDQG ILUP DQG EURXJKW
DUDSLGUHWXUQRIFRQILGHQFHLQRXUUHJLRQ
$'%·V 6HSWHPEHU JURZWK IRUHFDVW
VKRZV GHYHORSLQJ $VLD·V JURVV GRPHVWLF
+DUXKLNR.XURGD$'%3UHVLGHQW
DQGFXUUHQF\DSSUHFLDWLRQGHSHQGLQJRQ
VSHFLILF PDFURHFRQRPLF QHHGV 7DUJHWHG
ILVFDO PHDVXUHV VKRXOG UHPDLQ ERWK WR
KHOS YXOQHUDEOH VHFWRUV RI VRFLHW\ DQG WR
HQFRXUDJHVPDOODQGPHGLXPHQWHUSULVHV
ZKLFK DUH WKH PDLQ GULYHU RI JURZWK LQ
PHDQVGHYHORSLQJ$VLDKDVEHJXQWLJKWHQLQJ
PRQHWDU\ SROLF\ EHIRUH RWKHUV 6HYHUDO
HFRQRPLHVKDYHDOUHDG\UDLVHGSROLF\UDWHV
)DVWHUJURZWKDQGKLJKHU\LHOGVFDQGUDZ
H[FHVVLYH³DQGSRWHQWLDOO\YRODWLOH³FDSLWDO
IORZV LQWR WKH UHJLRQ $XWKRULWLHV DUH
SURGXFW*'3H[SDQGLQJE\LQ
ZHOODERYHODVW\HDU·V6WLPXOXVLVQRZ
EHLQJ ZLWKGUDZQ WR YDU\LQJ GHJUHHV³
EDVHG RQ WKH VWUHQJWK RI WKH UHFRYHU\
LQ HDFK HFRQRP\ %XW VXIILFH WR VD\ WKDW
DV GRPHVWLF GHPDQG UHPDLQV VWURQJ
LQ WKH UHJLRQ·V ODUJHU HFRQRPLHV³DQG
WKH SULYDWH VHFWRU EHJLQV WR LQYHVW RQFH
PRUH³PRQHWDU\ WLJKWHQLQJ ZLOO EH WKH
SULPDU\WRRO,WZLOOEHEDODQFHGEHWZHHQ
UDWHKLNHVLQFUHDVHGUHVHUYHUHTXLUHPHQWV

'HYHORSLQJ $VLD LQFOXGHV  GHYHORSLQJ PHPEHU
HFRQRPLHVRI$'%DQG%UXQHL'DUXVVDODP

(PHUJLQJ$VLDLQFOXGHVWKH$VVRFLDWLRQRI6RXWKHDVW
PDQ\RIWKHUHJLRQ·VHFRQRPLHV
:H H[SHFW HFRQRPLF JURZWK WR FRRO
VRPHZKDWQH[W\HDUDVVWLPXOXVLVZLWKGUDZQ
DQGJURZWKLQDGYDQFHGHFRQRPLHVVORZV
%XW*'3JURZWKLQGHYHORSLQJ$VLDVKRXOG
VWLOOEHDUREXVWLQ
2IFRXUVHWKHUHDUHULVNVDQGFKDOOHQJHV
$QG ZH PXVW EH SUHSDUHG 7KH ILUVW ULVN
ZRXOG EH D GLVUXSWLRQ LQ WKH UHFRYHU\ RI
DGYDQFHG HFRQRPLHV (YHQ ZLWKRXW WKLV
WKHUH DUH QDJJLQJ ORQJWHUP LVVXHV³
LQFOXGLQJXQHPSOR\PHQWKRZWRPDLQWDLQ
ILVFDOGLVFLSOLQHZLWKRXWGLVUXSWLQJUHFRYHU\
DQGKRZWRDYRLGWKHOXUHRISURWHFWLRQLVP
DVDSROLF\RSWLRQ
ZDWFKLQJDVVHWSULFHVDQGH[FKDQJH UDWHV
FDUHIXOO\ DQG VHYHUDO DUH EHJLQQLQJ WR
XVH ZHOOWDUJHWHG FDSLWDO FRQWUROV WR OLPLW
VSHFXODWLRQ&DUHPXVWEHWDNHQKRZHYHU
QRWWRFUHDWHGLVWRUWLRQV
7KHVH DOO UHODWH WR WKH LVVXHV ZH
ZLOO GLVFXVV WRGD\ +RZ ZLOO FRQWLQXHG
TXDQWLWDWLYHHDVLQJLQWKH8QLWHG6WDWHVDQG
SRVVLEO\RWKHUDGYDQFHGHFRQRPLHVDIIHFW
DVVHWSULFHVLQWKHUHJLRQ":KDWZRXOGEH
WKHLPSDFWRQFDSLWDOIORZVDQGH[FKDQJH
UDWHV" +RZ GR ZH KDQGOH SUHVVXUHV RQ
H[FKDQJHUDWHV"7KLVLVQRWVRPXFKDERXW
H[FKDQJHUDWHVDJDLQVWUHVHUYHFXUUHQFLHV
EXW UDWKHU LQWUDUHJLRQDO H[FKDQJH UDWH
$VLDQ1DWLRQV$6($1WKH3HRSOH·V5HSXEOLFRI&KLQD 7KH VHFRQG ULVN LV FDSLWDO IORZV SROLFLHV$QGRIFRXUVHZKDWGRHVDOORIWKLV
+RQJ .RQJ &KLQD 5HSXEOLF RI .RUHD 7DLSHL&KLQD ZKLFK FRXOG FRPSOLFDWH PDFURHFRQRPLF PHDQIRUPRQHWDU\FRRSHUDWLRQJHQHUDOO\
DQG,QGLD PDQDJHPHQW 5REXVW HFRQRPLF JURZWK DQGIRU$VLDVSHFLILFDOO\"

 'HFHPEHU

, EHOLHYH WKH EHVW ZD\ RI DSSURDFKLQJ
PXOWLODWHUDOLVVXHVOLNHEDODQFHGDQGVXVWDLQDEOH
JURZWKLVWRWKLQNJOREDOO\FRRUGLQDWHUHJLRQDOO\
DQGDFWQDWLRQDOO\
6XVWDLQLQJ*URZWKLQ$VLD
0XFKKDVEHHQVDLGDERXWWKHQHHGWRIL[
JOREDOSD\PHQWVLPEDODQFHVDQGKRZ$VLD
FDQFRQWULEXWHE\ERRVWLQJGRPHVWLFDQG
UHJLRQDOGHPDQGZKHWKHULQYHVWPHQWRU
FRQVXPSWLRQ%XWORRNLQJEH\RQGUHFRYHU\
GHYHORSLQJ $VLD LV IDFLQJ GDXQWLQJ FKDO
OHQJHVQRWRQO\WRVXVWDLQWKHPRPHQWXP
RI WKH UHFRYHU\ EXW DOVR WR HQVXUH EDO
DQFHGVXVWDLQDEOHDQGLQFOXVLYHORQJWHUP
JURZWK
:LWK GHFDGHV RI KLJK JURZWK EHKLQG
XV$VLD·VLQIOXHQFHLQWKHJOREDOHFRQRP\LV
ULVLQJGUDPDWLFDOO\SURPSWLQJPDQ\WRVD\
WKDWWKHVWFHQWXU\EHORQJVWR$VLD%XW,
DOZD\VVWUHVVWKDW$VLD·VIXWXUHVXFFHVVLVQRW
SUHRUGDLQHG,ILWVVLJQLILFDQWSRWHQWLDOLVWR
EHIXOILOOHG$VLDPXVWIRUPXODWHVWUDWHJLHV
WR VXVWDLQ JURZWK PRPHQWXP FRQWLQXH
WR LPSURYH OLYHOLKRRGV DQG ZRUN WRZDUG
LQFOXVLYHJURZWK3ROLFLHVWKDWZHUHHIIHFWLYH
ZKHQ$VLDZDVODUJHO\DORZLQFRPHFDSLWDO
VFDUFHUHJLRQDUHOHVVOLNHO\WREHHIIHFWLYH
WRGD\DQGLQWKHIXWXUH
, WKLQN WKHUH DUH VL[ EURDG DUHDV WKDW
FDQKHOSVXVWDLQJURZWKLQGHYHORSLQJ$VLD
7KHILUVWLVWUDGH7UDGHKDVEHHQDFRUH
LQJUHGLHQWRIWKHUHJLRQ·VSDVWVXFFHVVDV
LW ZLOO EH LQ WKH IXWXUH 7UDGH VWUDWHJLHV
PD\YDU\IURPRQHFRXQWU\RUVXEUHJLRQ
WRWKHQH[W(DVW$VLDDQG6RXWKHDVW$VLD
IRU H[DPSOH FDQ IRFXV RQ LQWUDUHJLRQDO
WUDGH DQG FRUUHVSRQGLQJ LQYHVWPHQW WR
ERRVW GRPHVWLF GHPDQG 7KH SULRULW\ LQ
6RXWK$VLDRQWKHRWKHUKDQGVKRXOGEH
WRUHGXFHWUDGHFRVWVDQGLQWHJUDWHEHWWHU
ZLWK WKH UHVW RI GHYHORSLQJ $VLD 7KH
UHJLRQ VKRXOG DOVR GHYHORS PHFKDQLVPV
IRU FRQVROLGDWLQJ IUHH WUDGH DJUHHPHQWV
$6($1$6($1WKH(DVW$VLD6XPPLW
SURFHVV DQG VHYHUDO RWKHU JURXSV DUH
OHDQLQJLQWKDWGLUHFWLRQ
7KHVHFRQGDUHDRIIRFXVLVLQIUDVWUXF
WXUH³ERWKTXDQWLW\DQGTXDOLW\:LWKRXW
LQIUDVWUXFWXUH KRZ FDQ RQH WUDGH DQG
SURGXFHHIILFLHQWO\"7KHUHFHQW$'%SXE
OLFDWLRQ,QIUDVWUXFWXUHIRUD6HDPOHVV$VLD
HVWLPDWHVWKDWWKHUHJLRQZLOOQHHGWULO
OLRQRYHUWKHQH[WGHFDGHWRVXSSRUWUDSLG
XUEDQL]DWLRQDQGSURYLGHEDVLFLQIUDVWUXF
WXUHLQUXUDODUHDV7KHVHFRQGXLWVIRUWUDGH
DUH FUXFLDO IRU WKH UXUDO²XUEDQ GLYLGH WR
QDUURZ,QYHVWPHQWLQURDGVZDWHUHQHUJ\
DQGRWKHUVHUYLFHVVWLPXODWHWKHHFRQRP\
DQGFUHDWHMREV
7KLUG LV ILQDQFH $FWLYDWLQJ $VLDQ
VDYLQJVIRU$VLDQLQYHVWPHQWLVDJUHDWZD\
RIPDLQWDLQLQJJURZWKZKLOHFRQWULEXWLQJ
WRJOREDOUHEDODQFLQJ7RDFFRPSOLVKWKLV
$VLD PXVW VWUHQJWKHQ LQVWLWXWLRQDO DQG
SUXGHQWLDO UHJXODWRU\ DQG VXSHUYLVRU\
IUDPHZRUNV DQG PDNH ILQDQFLDO VHUYLFHV
PRUHDFFHVVLEOHWRVPDOODQGPHGLXPVL]HG
HQWHUSULVHVDQGKRXVHKROGV$VLDPXVWDOVR
GHHSHQILQDQFLDOLQVWLWXWLRQVDQGGHYHORS
ORFDOFXUUHQF\ERQGPDUNHWVIRUVWDEOHDQG
VHFXUHORQJWHUPILQDQFLQJ³HVSHFLDOO\IRU
LQIUDVWUXFWXUH7KHGHYHORSPHQWRISHQVLRQ
DQGLQVXUDQFHLQGXVWULHVWRRZLOODOORZD
ZLGHUEDVHIRUORQJWHUPILQDQFHDQGZLOO
DOVRSURPRWHKXPDQFDSLWDOGHYHORSPHQW
E\FKDQQHOLQJUHVRXUFHVWRLQGLYLGXDOVZKR
ZDQWWRLQYHVWLQWKHLURZQHGXFDWLRQ
$QG WKDW LV WKH IRXUWK DUHD³KXPDQ
FDSLWDO(GXFDWLRQV\VWHPVDUHPXFKEHWWHU
WKDQWKH\ZHUHMXVWDGHFDGHRUWZRDJR
$QGGHYHORSLQJ$VLDLVJHQHUDOO\GRLQJZHOO
RQDWWDLQLQJWKH0LOOHQQLXP'HYHORSPHQW
*RDOVIRUHGXFDWLRQ%XWLWUHPDLQVDYHU\
ORQJ ZD\ IURP WKH FXUUHQW DYHUDJH RI
DGYDQFHGFRXQWULHV$VLGHIURPVLJQLILFDQW
LQYHVWPHQW UHIRUPV DUH QHHGHG WR DOLJQ
HGXFDWLRQ V\VWHPV WR WKH QHHGV RI WKH
HFRQRP\ DQG VRFLHW\ 3RRUHU HFRQRPLHV
DOVR QHHG WR LQYHVW PRUH LQ OLWHUDF\ DQG
EDVLFHGXFDWLRQ$QGJDLQVIRUPLGGOHWR
KLJKLQFRPH HPHUJLQJ $VLDQ HFRQRPLHV
ZLOO LQFUHDVLQJO\ UHO\ RQ LQQRYDWLRQ DQG
WHFKQRORJ\³QRW WKH OHDVW WR DYRLG WKH
SLWIDOOVRIWKHPLGGOHLQFRPHWUDS
7KHILIWKDUHDLVJUHHQJURZWK7KHUHLV
DQLQFUHDVLQJQHHGWRPLWLJDWHDQGDGDSW
WRFOLPDWHFKDQJH2QHRIWKHPRVWREYLRXV
UHVSRQVHVLVWRSURPRWHFOHDQHQHUJ\DQG
PRUHVSHFLILFDOO\DGYDQFHHQHUJ\HIILFLHQF\
DQG H[SDQG WKH XVH RI UHQHZDEOH HQHUJ\
VRXUFHV7KLVFDQEHGRQHIRUH[DPSOHE\
VHWWLQJHQHUJ\HIILFLHQF\WDUJHWVSURPRWLQJ
UHQHZDEOHHQHUJ\DQGSURYLGLQJLQFHQWLYHV
IRUKLJKHIILFLHQF\SRZHUSODQWV:HPXVW
PDNH RXU FLWLHV PRUH OLYDEOH ZKLOH DW WKH
VDPHWLPHHQKDQFLQJJURZWKDQGUHVLOLHQFH
8SJUDGLQJ XUEDQ SODQQLQJ LV HVVHQWLDO
SDUWLFXODUO\ LQ PDVV WUDQVLW ODQG XVH DQG
ZDWHUPDQDJHPHQW$QG$VLDPXVWPDQDJH
63((&+
LWV ODUJH DQG FULWLFDO HFRV\VWHPV IRU ORQJ
WHUPVXVWDLQDELOLW\
/DVWEXWQRWOHDVWLVUHJLRQDOHFRQRPLF
FRRSHUDWLRQ DQG LQWHJUDWLRQ , EHOLHYH
UHJLRQDO FRRSHUDWLRQ DQG LQWHJUDWLRQ
LV NH\ WR WUDQVIRUPLQJ $VLD·V HFRQRPLF
UHFRYHU\ LQWR VXVWDLQHG JURZWK :KLOH
WKHSUROLIHUDWLRQRIIUHHWUDGHDJUHHPHQWV
ZLWKLQ DQG DFURVV VXEUHJLRQV KDV KHOSHG
LQFUHDVHLQWUDUHJLRQDOWUDGHWKHUHLVDQHHG
IRUFRQVROLGDWLRQ5HJLRQDOFRRSHUDWLRQDQG
FRRUGLQDWLRQRQPDFURHFRQRPLFSROLF\FDQ
KHOSPDLQWDLQGHYHORSLQJ$VLD·VHFRQRPLF
DQG ILQDQFLDO VWDELOLW\ ZKLFK LV FUXFLDO IRU
VXVWDLQLQJUREXVWJURZWK)RUH[DPSOHWKH
UHJLRQFRXOGFUHDWHDPRUHIRUPDOGLDORJXH
RQ H[FKDQJH UDWH FRRUGLQDWLRQ³SHUKDSV
YLD DQ $6($1 LQLWLDWHG $VLDQ )LQDQFLDO
6WDELOLW\'LDORJXH7KLVZRXOGERRVWFURVV
ERUGHU LQYHVWPHQW DQG SURPRWH UHJLRQDO
GHPDQGWKHUHE\EROVWHULQJVXSSO\FKDLQV
DQG SURGXFWLRQ QHWZRUNV WR VXSSO\ ERWK
H[WHUQDOGHPDQGDQGWKHLQFUHDVLQJGHPDQG
IRUILQDOSURGXFWVZLWKLQ$VLD
%XLOGLQJDFRQVLVWHQWJURZWKVWUDWHJ\LV
DKXJHFKDOOHQJHLQYROYLQJJOREDOUHJLRQDO
DQG QDWLRQDO LQVWLWXWLRQV 7KHVH LQFOXGH
OHDGHUVKLS IRUXPV³OLNH WKH *³WKDW
SURYLGHJOREDOJXLGDQFHIRUODUJHPXOWLODWHUDO
LQVWLWXWLRQV7KH\DOVRLQFOXGHFURVV²UHJLRQDO
IUDWHUQLWLHV OLNH $3(& UHJLRQDO JURXSV LQ
$VLD VXFK DV $6($1 $6($1 DQG WKH
(DVW $VLD 3URFHVV DQG PDQ\ VXEUHJLRQDO
JURXSV$WWKHVDPHWLPHXOWLPDWHO\LWLV
HDFK VRYHUHLJQ QDWLRQ WKDW PXVW GHFLGH
ZKDW LV EHVW IRU LWVHOI 7KXV , EHOLHYH WKH
EHVWZD\RIDSSURDFKLQJPXOWLODWHUDOLVVXHV
OLNHEDODQFHGDQGVXVWDLQDEOHJURZWKLVWR
WKLQN JOREDOO\ FRRUGLQDWH UHJLRQDOO\ DQG
DFWQDWLRQDOO\
&RQFOXVLRQ
7RFRQFOXGHGHYHORSLQJ$VLDKDVGRQHZHOO
7KH UHJLRQ UHWXUQHG WR UDSLG HFRQRPLF
JURZWK IDVWHU WKDQ H[SHFWHG 7R VXVWDLQ
JURZWKLQWKHORQJUXQSROLF\PDNHUVPXVW
SULRULWL]HVWUXFWXUDOVXSSO\VLGHSROLFLHVWKDW
LPSURYH SURGXFWLYH FDSDFLW\ E\ IRVWHULQJ
IDFWRU DFFXPXODWLRQ DQG SURGXFWLYLW\
JURZWK :LWK IXUWKHU HFRQRPLF JURZWK
DQGVRFLDOHTXLW\EHLQJFUXFLDOO\GHSHQGHQW
XSRQ FOLPDWH FKDQJH KRZ ZH GHDO ZLWK
WKH FKDOOHQJHV SRVHG E\ FOLPDWH FKDQJH
UHPDLQVNH\WRHFRQRPLFUHVLOLHQFH
*OREDOL]DWLRQ LV D IDFW RI OLIH $OO
HFRQRPLHVDUHOLQNHGDQGQDWLRQDOSROLFLHV
KDYHVSLOORYHUVWRRWKHUHFRQRPLHV$VVXFK
UHJLRQDODQGJOREDOHFRQRPLFFRRSHUDWLRQ
DQG LQWHJUDWLRQ DUH FUXFLDO WR VXVWDLQ
JURZWKDQGHQVXUHHFRQRPLFDQGILQDQFLDO
VWDELOLW\
7KH WDVN LV LPPHQVH %XW LI ZH WKLQN
JOREDOO\ FRRUGLQDWH UHJLRQDOO\ DQG DFW
QDWLRQDOO\,DPFRQILGHQWZHDUHXSWRWKH
FKDOOHQJH„
'HFHPEHU 
 )($785(

/DR3'5 3URPRWLQJ/DR&URSV$EURDG
&RIIHHQRWFDEEDJHLVSHUKDSVWKHJUHDWHVWKRSH

)DUPLQJ6PDUWHU
RI WKLV UHJLRQ $V HDUO\ DV WKH V )UHQFK
FRORQLDOLVWVUHFRJQL]HGWKHYDOXHRIWKHUHJLRQ·V
YROFDQLFVRLOVDQGKLJKDOWLWXGHIRUFRIIHHJURZWK
%XWFRIIHHJURZQKHUHKDVQHYHUHQMR\HGWKH
EUDQGLQJ SRZHU RI 9LHWQDPHVH RU ,QGRQHVLDQ
%\3DWULFN:LQQDQG3KDQWRXOHWK/RXDQJUDM EHDQV ZKLFK DUH FRYHWHG DURXQG WKH ZRUOG
$LGHGE\LQYHVWPHQWVLQVNLOOWUDQVIHUVLUULJDWLRQDQGURDGXSJUDGHVYLOODJHUVLQWKH )DUPLQJ SUDFWLFHV ZHUH VR SRRU DQG DFFHVV WR
RXWVLGHPDUNHWVZDVVRZHDNWKDWWKHFRIIHH·V
/DRKLJKODQGVQRZKDYHWKHNQRZOHGJHWRLPSURYHWKHLUIDUPLQJDQGPDUNHWLQJ
UHJLRQDOVHOOLQJSULFHVDQNWROHVVWKDQSHU
WHFKQLTXHVFRQQHFWLQJWKHPWRPDUNHWVDVIDUDZD\DV-DSDQ NLORJUDPLQ

6
LJQV RI PRGHUQLW\ KDYH FRPH WR WKHVH IDUPHU3KDR.HRSDVHXWKZKRVHZLIHDQGVHYHQ ´%HIRUH WKH TXDOLW\ ZDV UDWKHU EDGµ VDLG
KDUGVFUDEEOHKLOOVLQVRXWKHUQ/DR3HRSOH·V FKLOGUHQRIWHQZHQWKXQJU\ 6RPERXQ 6DLERUNHR D FRIIHH IDUPHU LQ 3DN
'HPRFUDWLF5HSXEOLF/DR3'56DWHOOLWH
GLVKHVSHHNRXWIURPEHKLQGVWLOWHGKRPHV7KH
FKLUSRIPRELOHSKRQHVEUHDNVWKHTXLHWDVIDUP
HUVWDNHFDOOVIURPWUDGHUVVRPHSURYLQFHVDZD\
-XVWDGHFDGHDJROLIHKHUHZDVPRUHGLIILFXOW
)DPLOLHVDWHZKDWWKH\FRXOGJURZDQGOLWWOHHOVH
$JULFXOWXUHZDVSULPLWLYH0RUHWKDQWZRWKLUGVRI
IDUPVODFNHGDQ\W\SHRIPHFKDQL]HGHTXLSPHQW
´7KHVH SHRSOH ZHUH RQFH SHUFHLYHG DV XQ
FLYLOL]HGµ VDLG /DP 1JHXQK 3KDND\VRQH DQ
RIILFLDOZLWK/DR3'5·V0LQLVWU\RI$JULFXOWXUH
DQG)RUHVWU\´1RWDQ\PRUH3HRSOHIURPRXWVLGH
DUHDFWXDOO\FRPLQJKHUHIRUZRUN6RPHRIWKHVH
IDUPHUVDUHERVVHVQRZµ
0XFK RI WKLV LV RZHG WR WKH 6PDOOKROGHU
'HYHORSPHQW3URMHFWIXQGHGE\DPLOOLRQ
$'%ORDQWRPRGHUQL]HIDUPLQJWHFKQLTXHVLQ
FRQMXQFWLRQ ZLWK WKH JRYHUQPHQW 6LQFH 
IDUPHUVKDYHJDLQHGWKHVNLOOVDQGNQRZKRZWR
JURZQLFKHSURGXFWVWKDWIHWFKGHVLUDEOHSULFHV
DEURDGRUJDQLFFDEEDJHVVKLSSHGWR7KDLODQGDQG
KLJKTXDOLW\FRIIHHH[SRUWHGWR-DSDQ
$Q HVWLPDWHG  KRXVHKROGV KDYH VHHQ
WKHLULQFRPHVULVH$PRQJWKHPLVWKHIDPLO\RI
*HUKDUG-RUHQ
6LQFHIDUPHUVKDYHLQFUHDVLQJO\JURZQQLFKHSURGXFWVWKDWIHWFKGHVLUDEOHSULFHVDEURDGIRUH[DPSOH
RUJDQLFFDEEDJHVVKLSSHGWR7KDLODQGWKDQNVWRWKH$'%VXSSRUWHG6PDOOKROGHU'HYHORSPHQW3URMHFW
 'HFHPEHU
´$OO RI XV XVHG WR OLYH LQ D OLWWOH KXW PDGH
IURP EDPERRµ 3KDR VDLG ´:H VKDUHG D OLWWOH
ILHOG ZLWK UHODWLYHV EXW LW ZDVQ·W HQRXJK :H
ZHUHVWDUYLQJµ
7KHIDPLO\QRZOLYHVLQDKRPHRYHUORRNLQJ
VHYHUDO KHFWDUHV RI FDEEDJH ILHOGV ,UULJDWLRQ
DQGDVHFRQGKDQGWUDFWRUKDYHLQFUHDVHG\LHOGV
GUDPDWLFDOO\ IRU WKLV IDPLO\ DQG RWKHUV LQ WKH
UHJLRQ 3DN ;RQJ YLOODJH RQFH SURGXFHG RQO\
DERXWWRQVRIFDEEDJHVSHU\HDU7KHDYHUDJH
LVQRZURXJKO\WRQVSHU\HDUDFFRUGLQJWR
YLOODJHOHDGHUV
%H\RQG EDVLF IDUPLQJ PRGHUQL]DWLRQ WKH
SURMHFW KDV OLQNHG WKHVH UHPRWH KLJKODQGV WR
ODUJHUPDUNHWVRXWVLGH/DR3'5,PSURYHGDOO
ZHDWKHUURDGVQRZFRQQHFWORFDOVWRQHZO\EXLOW
PDUNHWVRQWKH7KDL²/DRERUGHUZKHUHWUDGHUV
EX\SURGXFHLQEXON)DUPHUVKDYHOHDUQHGEDVLF
PDUNHW HFRQRPLFV DQG WHFKQLTXHV WR QHJRWLDWH
ZLWKIDUDZD\EX\HUVXVLQJWH[WPHVVDJLQJ
´&HOOSKRQHVXVHGWREHDOX[XU\LWHPµ/DP
1JHXQK VDLG ´1RZ WKH\ XVH WKHP WR VWD\ LQ
WRXFK,IDQRUGHUIRUFDEEDJHFRPHVWKH\FDQ
KDUYHVWLWDQGKDYHLWRQWKHURDGLQKRXUVµ
;RQJ´:HKDGVROLWWOH:HZHUHZDONLQJNLO
RPHWHUV KHDY\ VDFNV RQ RXU EDFNV MXVW WR JHW
WRRXUFRPPXQDOJDUGHQVµ'HVSHUDWHPDQ\RI
KLVIHOORZIDUPHUVDEDQGRQHGWKHLUFRIIHHILHOGV
DOWRJHWKHU
7KURXJK WUDLQLQJ IDUPHUV KDYH OHDUQHG WR
URWDWHFURSVEHWZHHQFDEEDJHDQGFRIIHHVRWKDW
WKHVRLOLVQRWGHSOHWHGRIQXWULHQWV(YHQWXDOO\
IDUPHUV DQG SURMHFW GLUHFWRUV KRSH /DRJURZQ
FRIIHH ZLOO EH ZLGHO\ UHFRJQL]HG E\ JOREDO FRQ
QRLVVHXUVDQGWKHSURMHFWKDVKHOSHGGHYHORSHG
WKH VXSSO\ FKDLQ ORJLVWLFV QHHG IRU WKLV JURZWK
6PDOOIDFWRULHVKDYHVSUXQJXSDURXQGWKHUHJLRQ
WR SURGXFH ERWK ZKROHEHDQ DQG LQVWDQW FRIIHH
IRUH[SRUW
´7KH IDUPLQJ PHWKRGV DUH LPSURYHG WKH
FRIIHHLVKLJKTXDOLW\DQGWKHSULFHZHJHWLVIDLU
)RUQRZZHVHQGWKHEHVWVWXIIWR-DSDQDQGVHOO
WKH UHVW WR ORFDO PDUNHWVµ 6RPERXQ VDLG 7KH
*RYHUQPHQWRI/DR3'5KRSHVWRVHOOLPSURYHG
FRIIHH EHDQV LQ HYHQ PRUH PDUNHWV VXFK DV
3RODQGDQGWKH5XVVLDQ)HGHUDWLRQ
7KHVHKRSHVDUHDOUHDG\SOD\LQJRXWLQ3KDR·V
VPDOOFDEEDJHJDUGHQZKHUHKLVFRIIHHVHHGOLQJV
DUHSXVKLQJXSWKURXJKWKHVRLO(DFKPRUQLQJ
KH ZDONV WKURXJK WKH YROFDQLF URFNVWXGGHG
JDUGHQDQGLQVSHFWVWKHWLQ\VKUXEV7KLVLVKLV
ILUVW DWWHPSW DW JURZLQJ FRIIHH 1HLJKERUV DQG
YLOODJHHOGHUVZKRKDYHJURZQWKHEHDQVIRU\HDUV
KHOSHG KLP GHYHORS KLV NQRZOHGJH RI WKH FURS
DQGPDUNHWQHHGV,WLVOHVVODERULQWHQVLYHWKDQ
FDEEDJHVDLG3KDR
)DUIURP3HUIHFW
7KHIDPLO\·VOLIHLVIDUIURPSHUIHFWVDLGKLVZLIH
/HXP6DQJVDYDQJ7KH\VWLOOUHO\RQWKHLUVHYHQ
FKLOGUHQ DQG WZR VRQVLQODZ WR ZRUN WKH ODQG
HDFKGD\
6WLOOVKHUHPHPEHUVUHFHQW\HDUVZKHQWKH\
FRXOGQRWHYHQDIIRUGYHJHWDEOHVWRVXSSOHPHQW
WKHLUPHDJHUULFHGLHW+HUFKLOGUHQQRZHQMR\DI
WHUQRRQVRQWKHLUVWLOWHGSRUFKJRVVLSLQJDQGQLE
EOLQJPHORQULQGVRYHUDILHOGRISOXPSFDEEDJHV
´&DEEDJHVXVHGWRORRNVRWDVW\WRXVZKHQ
ZHFRXOGQ·WDIIRUGWKHPµVKHVDLG´%XWZH·UH
VRERUHGRIFDEEDJHWKHVHGD\VWKDWZHRQO\HDW
LWRQFHHYHU\GD\VRUVR:H·UHKRSLQJIRUHYHQ
PRUHPRQH\RQFHWKHFRIIHHFRPHVLQµ„
 352-(&76

%DQJODGHVK*HWV0IRU%ULGJH3URMHFW
$
'%ZLOOH[WHQGPLOOLRQLQILQDQFLDO
DVVLVWDQFH WR %DQJODGHVK IRU D PDMRU
EULGJHSURMHFWZKLFKZLOOKHOSDFFHOHUDWH
JURZWK DQG SRYHUW\ UHGXFWLRQ LQ WKH FRXQWU\·V
SRRUDQGXQGHUGHYHORSHGVRXWKZHVWUHJLRQ
7KH$'%%RDUGRI'LUHFWRUVDSSURYHGRQ
1RYHPEHUWKHIXQGVIRUWKHFRQVWUXFWLRQRI
DPXOWLSXUSRVHEULGJHDFURVVWKH3DGPD5LYHU
ZKLFKZLOOOLQNWKHVRXWKZHVWWRWKHQRUWKHUQDQG
HDVWHUQUHJLRQV
´%\ SURYLGLQJ D YLWDO LQIUDVWUXFWXUH OLQN
EHWZHHQWKHFDSLWDOFLW\'KDNDDQGWKHOHVVGH
YHORSHGVRXWKZHVWUHJLRQWKH3DGPDEULGJHZLOO
JLYHWKHQDWLRQDOHFRQRP\DPDMRUERRVWµVDLG
6XOWDQ + 5DKPDQ GLUHFWRU JHQHUDO RI $'%·V
$)3

6RXWK$VLD'HSDUWPHQW
´,WLVWKHODUJHVWSURMHFWDVVLVWDQFHZHKDYH %ULGJHSURMHFWVVXFKDVWKH%DQJDEDQGKX%ULGJHRYHUWKH-DPLQD5LYHUZKLFKZDVEXLOWZLWKVXSSRUWIURP$'%-DSDQ
SURYLGHG WR %DQJODGHVK ,PSOHPHQWLQJ VXFK D
ODUJHSURMHFWZLOOEHDPDMRUFKDOOHQJHDQGWKH
JRYHUQPHQW DQG GHYHORSPHQW SDUWQHUV ZRXOG
QHHGWRZRUNYHU\FORVHO\WRLQLWLDWHDQGFRPSOHWH
WKHSURMHFWRQWLPHµKHDGGHG
´7KLV EULGJH SURMHFW ZLOO DOVR KDYH ZLGHU
VXEUHJLRQDOLPSDFWVDVLWZLOOIRUPSDUWRIWKH
SURSRVHG $VLDQ +LJKZD\ URXWH WKDW FRQQHFWV
$VLD WR (XURSHµ VDLG +LGHDNL ,ZDVDNL SULQ
FLSDOWUDQVSRUWVSHFLDOLVWRI$'%·V6RXWK$VLD
'HSDUWPHQW
$'%LVSURYLGLQJRYHURIWKHWRWDOLQYHVW
PHQWFRVWRIQHDUO\ELOOLRQIRUWKHEULGJH
SURMHFW 7KH :RUOG %DQN -DSDQ ,QWHUQDWLRQDO
,QWHUQDWLRQDO&RRSHUDWLRQ$JHQF\-,&$DQGWKH:RUOG%DQNKDYHEHHQPDMRUJURZWKDQGSRYHUW\UHGXFWLRQGULYHUV
IRU%DQJODGHVK6LPLODUEHQHILWVLQWKHVRXWKZHVWUHJLRQDUHH[SHFWHGZLWKWKH3DGPDEULGJHSURMHFW
WHUPLQHGLQDFFRUGDQFHZLWKLWV/,%25EDVHG RI  ZKLFK ULVHV WR  IRU WKH EDODQFH RI
OHQGLQJIDFLOLW\7KHVHFRQGORDQRIPLOOLRQ WKHWHUP
HTXLYDOHQW IURP $'%·V FRQFHVVLRQDO $VLDQ 7KH %DQJODGHVK %ULGJH $XWKRULW\ LV WKH
'HYHORSPHQW)XQGKDVD\HDUWHQRUZLWKDQ H[HFXWLQJDJHQF\IRUWKHSURMHFWZKLFKLVGXHIRU
\HDUJUDFHSHULRGFDUU\LQJDQDQQXDOLQWHUHVW FRPSOHWLRQLQ'HFHPEHU„
%\ SURYLGLQJ D YLWDO LQIUDVWUXFWXUH OLQN
EHWZHHQ WKH FDSLWDO FLW\ 'KDND DQG WKH OHVV
&RRSHUDWLRQ$JHQF\-,&$DQG,VODPLF'HYHO
RSPHQW%DQNDUHDOVRFRQWULEXWLQJWRWKHSURMHFW
DVFRILQDQFLHUV
$'%·VDVVLVWDQFHZLOOEHH[WHQGHGWKURXJK
WZR ORDQV 7KH ILUVW DPRXQW RI  PLOOLRQ
ZKLFKZLOOFRPHIURP$'%·VRUGLQDU\FDSLWDO
UHVRXUFHV KDV D \HDU WHQRU ZLWK D \HDU
JUDFH SHULRG DQG DQ DQQXDO LQWHUHVW UDWH GH
0/RDQWR,PSURYH8UEDQ3ODQQLQJ
6HUYLFHVLQ'KDNDDQG.KXOQD
%
DQJODGHVK VXSSRUWHG E\ D  PLOOLRQ
HTXLYDOHQW$'%ORDQLVSODQQLQJDQRYHU
KDXORIXUEDQSODQQLQJDQGLQIUDVWUXFWXUH
LQWZRRILWVELJJHVWFLW\UHJLRQVZKHUHVHUYLFHV
KDYHVWUXJJOHGWRNHHSXSZLWKERRPLQJSRSXOD
WLRQV
7KH$'%%RDUGRI'LUHFWRUVDSSURYHGWKH
ORDQIRUWKH%DQJODGHVK&LW\5HJLRQ'HYHORS
PHQW3URMHFWZKLFKZLOOWDUJHWHQHUJ\HIILFLHQW
HQYLURQPHQWDOO\IULHQGO\XUEDQVHUYLFHVPRUH
FRRUGLQDWHGUHJLRQDOGHYHORSPHQWSODQQLQJDQG
VWURQJHUPDQDJHPHQWFDSDFLW\IRUPXQLFLSDOL
WLHVLQWKHVSUDZOLQJFLW\UHJLRQVRI'KDNDDQG
.KXOQDZKLFKLQFOXGHVXUURXQGLQJVHFRQGDU\
WRZQV
GHYHORSHGVRXWKZHVWUHJLRQWKH3DGPDEULGJH
ZLOOJLYHWKHQDWLRQDOHFRQRP\DPDMRUERRVW
´7KHJRDOLVWRLQFUHDVHWKHJURZWKSRWHQWLDO
DQGHQYLURQPHQWDOVXVWDLQDELOLW\RIWKHVHWZRFLW\
UHJLRQVµVDLG0DVD\XNL7DFKLLULXUEDQHFRQR
PLVWRI$'%·V6RXWK$VLD'HSDUWPHQW
%DQJODGHVK·V FLWLHV KDYH EHHQ JURZLQJ DW
EUHDNQHFN SDFH ZLWK WKH XUEDQ SRSXODWLRQ H[
SHFWHGWRGRXEOHWRPLOOLRQE\+RZHYHU
XUEDQSODQQLQJDQGSXEOLFVHUYLFHVKDYHIDLOHGWR
GHYHORS DW WKH VDPH SDFH UHVWULFWLQJ HFRQRPLF
DQGVRFLDODFWLYLWLHV
$ORQJZLWKSK\VLFDOLPSURYHPHQWVWRZDWHU
GUDLQDJHXUEDQWUDQVSRUWDQGRWKHUIDFLOLWLHVWKH
SURMHFWZLOOLQFRUSRUDWHDSLORWSURJUDPWKDWZLOO
LQVWDOO HQHUJ\HIILFLHQW ZDWHU SXPSV DQG VRODU
SRZHUHGVWUHHWOLJKWV„
6XOWDQ+5DKPDQ
'LUHFWRU*HQHUDORI$'%·V
6RXWK$VLD'HSDUWPHQW
05XUDO
,QIUDVWUXFWXUH3URMHFW
WR6SXU*URZWK
%
DQJODGHVK LV VWHSSLQJ XS HIIRUWV WR XS
JUDGH UXUDO URDGV DQG PDUNHW IDFLOLWLHV
WRLPSURYHJURZWKDQGOLYHOLKRRGRSSRU
WXQLWLHVDQGWRFXWSRYHUW\LQXQGHUGHYHORSHG
DUHDV
7KH$'%%RDUGRI'LUHFWRUVDSSURYHGDORDQ
RIPLOOLRQHTXLYDOHQWIRUWKH6XVWDLQDEOH5XUDO
,QIUDVWUXFWXUH,PSURYHPHQW3URMHFWZKLFKZLOO
EHFDUULHGRXWLQGLVWULFWVLQWKHQRUWKZHVWDQG
VRXWKZHVWRIWKHFRXQWU\7KHSURMHFWLVH[SHFWHG
WREHFRILQDQFHGE\DJUDQWIRU¼PLOOLRQHTXLYD
OHQWIURP.I:WKH*HUPDQJRYHUQPHQWRZQHG
GHYHORSPHQWEDQN„
'HFHPEHU 
352-(&76

$'%([WHQGV0IRU+LJKZD\
2YHUKDXOLQ,QGLD·V.DUQDWDND6WDWH
$
'% ZLOO H[WHQG  PLOOLRQ WR WKH JRY
HUQPHQWRI.DUQDWDNDVWDWHLQ,QGLDIRUD
PDMRURYHUKDXORIWKHRYHUEXUGHQHGVWDWH
KLJKZD\V\VWHPZKLFKZLOOKHOSVSXUHFRQRPLF
JURZWKDQGQHZOLYHOLKRRGRSSRUWXQLWLHV
7KH$'%%RDUGRI'LUHFWRUVDSSURYHGDORDQ
IRUWKH.DUQDWDND6WDWH+LJKZD\,PSURYHPHQW
3URMHFW,WZLOOXSJUDGHRYHUNLORPHWHUVRIVWDWH
KLJKZD\V DQG VXSSRUW LPSURYHG URDG SODQQLQJ
SURJUDPPLQJRSHUDWLRQPDLQWHQDQFHDQGVDIHW\
´7KHORQJWHUPLPSDFWRIWKLVLQLWLDWLYHZLOOEH
DFFHOHUDWHGHFRQRPLFJURZWKLQ.DUQDWDNDZLWK
URDGXSJUDGHVLPSURYLQJDFFHVVWRHVVHQWLDOVHUYLFHV
ZKLOHSURYLGLQJHPSOR\PHQWRSSRUWXQLWLHVIRUWKH
UXUDOSRRUµVDLG2OHJ7RQNRQRMHQNRYVHQLRUWUDQV
SRUWVSHFLDOLVWRI$'%·V6RXWK$VLD'HSDUWPHQW
,QGLD·VERRPLQJHFRQRP\KDVOHGWRDVKDUS
ULVHLQSDVVHQJHUDQGIUHLJKWWUDYHORQLWVURDGV
6WDWH KLJKZD\V³ZKLFK DUH VHFRQGDU\ URXWHV
OLQNLQJ WR QDWLRQDO URDGV DQG FDUU\ DERXW 
RIDOOWUDIILF³DUHHVSHFLDOO\RYHUEXUGHQHGZLWK
LQFUHDVLQJFRQJHVWLRQGHWHULRUDWLQJVXUIDFHVDQG
JURZLQJVDIHW\LVVXHV
7KH SK\VLFDO ZRUN ZLOO LQFOXGH H[SDQGLQJ
URDGV LQWR WZR ODQHV FRQVWUXFWLQJ E\SDVVHV
VWUHQJWKHQLQJH[LVWLQJFXOYHUWVDQGEULGJHVDQG
EXLOGLQJQHZURDGEULGJHVUDLORYHUEULGJHVDQG
FURVVGUDLQDJHVWUXFWXUHV7KHSURMHFWDOVRSXWV
DVWURQJIRFXVRQEHHILQJXSWKHFDSDFLW\RIWKH
VWDWH·V3XEOLF:RUNV'HSDUWPHQWWRSODQGHYHORS
RSHUDWH DQG PDLQWDLQ WKH URDG QHWZRUN HIIHF
WLYHO\DQGLQFOXGHVVXSSRUWIRUWKHHVWDEOLVKPHQW
RIDSODQQLQJDQGURDGDVVHWPDQDJHPHQWFHQWHU
´7KHSURMHFWZLOOKHOSWKHGHSDUWPHQWSXWLQ
SODFHREMHFWLYHGDWDGULYHQSODQQLQJDQGSURJUDP
PLQJIRUQHWZRUNGHYHORSPHQWDQGPDLQWHQDQFH
DVZHOODVHQVXUHVDIHW\PHDVXUHVDQGHQYLURQ
PHQWDO DQG VRFLDO VDIHJXDUGV DUH LQFRUSRUDWHG
$)3

LQWRWKHSURMHFWF\FOHµVDLG0U7RQNRQRMHQNRY ,QGLD·VERRPLQJHFRQRP\KDVOHGWRDVKDUSULVHLQSDVVHQJHUDQGIUHLJKWWUDYHORQLWVURDGV6WDWHKLJKZD\V
7KHORDQZKLFKZLOOFRPHIURP$'%·VRUGL ZKLFKOLQNVHFRQGDU\URXWHVWRQDWLRQDOURDGVFDUU\DERXWRIDOOWUDIILF
QDU\FDSLWDOUHVRXUFHVZLOOPDNHXSRYHURI
WKHWRWDOSURMHFWFRVWRIQHDUO\PLOOLRQ,WKDV
D\HDUWHUPZLWKDJUDFHSHULRGRI\HDUVDQG
DQDQQXDOLQWHUHVWUDWHGHWHUPLQHGLQDFFRUGDQFH 7KHORQJWHUPLPSDFWRIWKLVLQLWLDWLYHZLOOEH
ZLWK$'%·V/,%25EDVHGOHQGLQJIDFLOLW\$QDG
GLWLRQDOWHFKQLFDODVVLVWDQFHJUDQWRIPLOOLRQ DFFHOHUDWHGHFRQRPLFJURZWKLQ.DUQDWDNDZLWK
IURP$'%·VFRQFHVVLRQDO7HFKQLFDO$VVLVWDQFH
6SHFLDO)XQGZLOOEHXVHGWRKHOSWKH3XEOLF:RUNV URDG XSJUDGHV LPSURYLQJ DFFHVV WR HVVHQWLDO
'HSDUWPHQWEXLOGFDSDFLWLHVIRUVWUHQJWKHQLQJLWV
URDGDVVHWDQGVDIHW\PDQDJHPHQWFDSDELOLWLHV
VHUYLFHVZKLOHSURYLGLQJHPSOR\PHQWRSSRUWXQLWLHV
7KHWHFKQLFDODVVLVWDQFHZLOODOVRKHOSWKH.DUQD
WDNDJRYHUQPHQWEXLOGFDSDFLWLHVIRUFDUU\LQJRXW
IRUWKHUXUDOSRRU
SURMHFWVZLWKSULYDWHVHFWRUSDUWLFLSDWLRQ 2OHJ7RQNRQRMHQNRY
.DUQDWDND·V3XEOLF:RUNV'HSDUWPHQWLVWKH 6HQLRU7UDQVSRUW6SHFLDOLVWRI$'%·V
H[HFXWLQJDJHQF\IRUWKHSURMHFWZKLFKLVGXHIRU
FRPSOHWLRQE\'HFHPEHU„
6RXWK$VLD'HSDUWPHQW

 'HFHPEHU
 352-(&76

$'%WR+HOS35&·V6PDOOHU&LWLHV
6ZLWFKWR1DWXUDO*DV6DYH(QHUJ\
$
'% LV H[WHQGLQJ XS WR  PLOOLRQ WR
IDFLOLWDWH SULYDWH VHFWRU SDUWLFLSDWLRQ LQ
QDWXUDOJDVGLVWULEXWLRQLQIUDVWUXFWXUHLQ
WKH3HRSOH·V5HSXEOLFRI&KLQD35&
7KHSURMHFWZLOOVXSSRUWWKH*RYHUQPHQWRI
WKH35&·VSXVKWRUHGXFHFRDOFRQVXPSWLRQDQG
LQFUHDVHWKHXVHRIQDWXUDOJDVDFOHDQHUIXHOWKDW
LVEHWWHUIRUWKHHQYLURQPHQWDQGLQODUJHVXSSO\
LQWKH35&
7KH$'%%RDUGRI'LUHFWRUVDSSURYHGDORDQ
IRUWKHVHFRQGSKDVHRIWKH0XQLFLSDO1DWXUDO*DV
,QIUDVWUXFWXUH'HYHORSPHQW3URMHFWZKLFKZLOO
DOORZ &KLQD *DV +ROGLQJV /LPLWHG RQH RI WKH
OHDGLQJ SULYDWH QDWXUDO JDV GLVWULEXWLRQ FRPSD
$)3

QLHVWRH[SDQGFRYHUDJHLQWRVPDOOHUVL]HGFLWLHV
LQFHQWUDODQGZHVWHUQ35&,WIROORZVWKHILUVW $ZRUNHUFKHFNVWKHYDOYHRIDJDVSLSHDWDQDWXUDOJDVSODQWLQ6LFKXDQSURYLQFHLQWKH3HRSOH·V5HSXEOLFRI
SKDVHDVVLVWDQFHWRWKHFRPSDQ\IRUWKHUROORXWRI
JDVLQIUDVWUXFWXUHLQODUJHUUHJLRQDOKXEV
´7KHSURMHFWZLOOKHOSSURYLGHDFOHDQUHOL
DEOH DQG ORQJWHUP HQHUJ\ VRXUFH WR SHRSOH LQ
HPHUJLQJ FLWLHV ZKHUH FXUUHQW LQIUDVWUXFWXUH LV
XQGHUGHYHORSHGDQGGHPDQGLVSUHVHQWO\XQPHWµ
VDLG+LVDND.LPXUDVHQLRULQYHVWPHQWVSHFLDOLVW
$'%·V3ULYDWH6HFWRU2SHUDWLRQV'HSDUWPHQW
´7KH35&JRYHUQPHQWKDVVHWDORQJWHUPWDUJHW
WRLQFUHDVHXVDJHRIQDWXUDOJDVDFOHDQHUIXHO
IURPLWVFXUUHQWVKDUHRIWRE\2QH
PLOOLRQFXELFPHWHUVRIQDWXUDOJDVFDQUHSODFH
WRQVRIFRDOFRQVXPSWLRQµ
7KH35&KDVQDWXUDOJDVUHVHUYHVHVWLPDWHG
DWDURXQGWULOOLRQFXELFPHWHUVDQGLWKDVEHHQ
EXLOGLQJERWKLQWHUQDWLRQDODQGGRPHVWLFSLSHOLQH
QHWZRUNVWRLPSURYHDFFHVV+RZHYHU´ODVWPLOHµ
GLVWULEXWLRQLQIUDVWUXFWXUHZLWKLQVPDOOHUXUEDQ
FHQWHUVUHPDLQVXQGHUGHYHORSHGUHVXOWLQJLQJDV
VKRUWDJHVLQVRPHDUHDV
$'% ZLOO DOVR SURYLGH WHFKQLFDO DVVLVWDQFH
RQ FRPELQLQJ HQHUJ\HIILFLHQF\ HQKDQFHPHQW
PHDVXUHVZLWKFRQYHUVLRQIURPFRDORUGLHVHORLO
WRQDWXUDOJDVWRORZHUORQJWHUPHQGXVHUHQHUJ\
FRVWV7KHWHFKQLFDODVVLVWDQFHZLOOLQYROYHDJUDQW
RIIURPWKH0XOWL'RQRU&OHDQ(QHUJ\
)XQG DGPLQLVWHUHG E\ $'% 7KH IXQG ZKLFK
0,QYHVWPHQWWR+HOS31*$GGUHVV
&ULWLFDO*DSVLQ3RZHU6XSSO\
$ $
'% ZLOO H[WHQG  PLOOLRQ LQ ORDQV WR
&KLQD35&7KHSURMHFWZLOOVXSSRUWWKHJRYHUQPHQW·VHIIRUWVWRUHGXFHFRDOFRQVXPSWLRQDQGLQFUHDVHWKH
XVHRIQDWXUDOJDVDFOHDQHUIXHOZKLFKLVLQODUJHVXSSO\LQWKH35&
LQFOXGHVFRQWULEXWLRQVIURPWKHJRYHUQPHQWVRI
$XVWUDOLD1RUZD\6SDLQDQG6ZHGHQLVSDUWRI
WKH&OHDQ(QHUJ\)LQDQFLQJ3DUWQHUVKLS)DFLOLW\
´$'%LVDVKDUHKROGHURI&KLQD*DV+ROG
LQJV/LPLWHGDQGRYHUWKH\HDUVLWKDVVXSSRUWHG
RXU GHYHORSPHQW LQ VXFK DUHDV DV ILQDQFH DQG
FRUSRUDWH JRYHUQDQFH ZKLOH HQKDQFLQJ RXU
$'%LVDVKDUHKROGHURI&KLQD*DV+ROGLQJV
/LPLWHG DQG RYHU WKH \HDUV LW KDV VXSSRUWHG
RXU GHYHORSPHQW LQ VXFK DUHDV DV ILQDQFH DQG
FRUSRUDWH JRYHUQDQFH ZKLOH HQKDQFLQJ RXU
HQYLURQPHQWDO SURWHFWLRQ DQG FRUSRUDWH VRFLDO
UHVSRQVLELOLW\PHDVXUHV
\HDUSRZHUGHYHORSPHQWSODQWKURXJKWR
HQYLURQPHQWDO SURWHFWLRQ DQG FRUSRUDWH VRFLDO
UHVSRQVLELOLW\PHDVXUHVµVDLG/LX0LQJKXLPDQ
DJLQJGLUHFWRURI&KLQD*DV´:HZLOOPDLQWDLQ
RXUIRFXVRQHQYLURQPHQWDOSURWHFWLRQDQGIXOILOO
RXU FRUSRUDWH VRFLDO UHVSRQVLELOLWLHV DQG ZLOO
FRQWLQXHWRSURPRWHWKHUHIRUPDQGGHYHORSPHQW
RIFOHDQHQHUJ\LQWKH35&µ„
/LX0LQJKXL
0DQDJLQJ'LUHFWRURI&KLQD*DV
+ROGLQJV/LPLWHG
$'%6LJQV-RLQW9HQWXUH
$JUHHPHQWWR'HYHORS
5HQHZDEOH(QHUJ\LQ,QGLD
'%VLJQHGRQ1RYHPEHUDMRLQWYHQWXUH
3DSXD1HZ*XLQHD31*IRUUHQHZDEOH
HQHUJ\IDFLOLWLHVWKDWZLOOKHOSWKHFRXQWU\
PHHWFULWLFDOHOHFWULFLW\VXSSO\JDSVLQSURYLQFLDO
XUEDQFHQWHUV
7KH $'% %RDUG RI 'LUHFWRUV DSSURYHG D
PXOWLWUDQFKH ILQDQFLQJ IDFLOLW\ IRU WKH 7RZQ
(OHFWULILFDWLRQ,QYHVWPHQW3URJUDPZKLFKZLOO
,W ZLOO IXQG LQ WZR VWDJHV UHQHZDEOH HQHUJ\
DJUHHPHQWZLWK,QGLD·V173&/WGDQG
IDFLOLWLHV LQFOXGLQJ UXQRIULYHU K\GURSRZHU
.\XVKX(OHFWULF3RZHU&RPSDQ\RI-DSDQ
SODQWV DQG WUDQVPLVVLRQ V\VWHPV LQ DERXW VL[
WRGHYHORSDQGRSHUDWHPHJDZDWWVRIUHQHZ
SURYLQFLDOFHQWHUV
DEOHHQHUJ\SURMHFWVLQ,QGLDLQWKHQH[W\HDUV
´%\ SURYLGLQJ WKHVH FHQWHUV ZLWK FOHDQ
,QGLDLVWKHWKLUGODUJHVWHOHFWULFLW\FRQVXPHU
UHOLDEOHSRZHUVXSSOLHVWKHSURJUDPZLOOJUHDWO\
LQ$VLDDIWHUWKH3HRSOH·V5HSXEOLFRI&KLQDDQG
FRQWULEXWHWRWKHVWDWHXWLOLW\31*3RZHU/WG·V &RQWLQXHGRQSDJH &RQWLQXHGRQSDJH

'HFHPEHU 
38%/,&$7,216

1HZ3XEOLFDWLRQV
$'%:RUNLQJ3DSHU6HULHVRQ5HJLRQDO(FRQRPLF
83&20,1*(9(176
,QWHJUDWLRQ1R
ADB Working Paper Series on
Regional Economic Integration ,QVWLWXWLRQDO'HVLJQRI5HJLRQDO,QWHJUDWLRQ
/RQGRQ 6FKRRO RI (FRQRPLFV DQG 3ROLWLFDO 6FLHQFHV· 6LPRQ +L[ 'HFHPEHU
DVVHVVHVWKHFRQYHUJHQFHRIQDWLRQDOSUHIHUHQFHVHVWDEOLVKPHQWRI
WR
HTXLWDEOHV\VWHPVRIUHSUHVHQWDWLRQDQGLQVWLWXWLRQDOVFHQDULRVIRU &RQIHUHQFHRQ3RVWFULVLV
Institutional Design of Regional Integration: Balancing
Delegation and Representation
$VLDQHFRQRPLFXQLRQ (PSOR\PHQWDQG6RFLDO3ROLFLHV
6LPRQ+L[
No. 64 | November 2010 LQ'HYHORSLQJ$VLD
$'%,QVWLWXWH7RN\R

&RQWDFW
-RKQ:HVW
MZHVW#DGELRUJ
$'%:RUNLQJ3DSHU6HULHVRQ5HJLRQDO(FRQRPLF
,QWHJUDWLRQ1R
ADB Working Paper Series on
Regional Economic Integration 5HJLRQDO-XGLFLDO,QVWLWXWLRQVDQG(FRQRPLF
&RRSHUDWLRQ
*HRUJHWRZQ 8QLYHUVLW\·V (ULN 9RHWHQ VKRZV WKDW DOWKRXJK $VLDQ -DQXDU\
VWDWHV· UHOXFWDQFH WR UHIHU LQWHUVWDWH GLVSXWHV WR JOREDO MXGLFLDO WR
Regional Judicial Institutions and Economic Cooperation:
Lessons for Asia?
LQVWLWXWLRQV LV QRW XQXVXDO WKH\ FRXOG OHDUQ IURP H[SHULHQFHV RI $'%,2(&'5RXQGWDEOHRQ/DERU0LJUDWLRQ
(ULN9RHWHQ
No. 65 | November 2010
UHJLRQDOFRXUWVHOVHZKHUH LQ$VLD5HFHQW7UHQGVDQG3URVSHFWVLQWKH
3RVWFULVLV&RQWH[W
$%',QVWLWXWH7RN\R

ADB Working Paper Series on
Regional Economic Integration
The Awakening Chinese Economy: Macro and Terms
of. Trade Impacts on 10 Major Asia-Pacific Countries
&RQWDFW
-RKQ:HVW
MZHVW#DGELRUJ
$'%:RUNLQJ3DSHU6HULHVRQ5HJLRQDO(FRQRPLF
,QWHJUDWLRQ1R
7KH$ZDNHQLQJ&KLQHVH(FRQRP\0DFURDQG7HUPVRI
7UDGH,PSDFWVRQ0DMRU$VLD3DFLILF&RXQWULHV
8VLQJ D PXOWLFRXQWU\ PRGHO 0RQDVK 8QLYHUVLW\·V <LQ +XD 0DL
3KLOOLS$GDPVDQG3HWHU'L[RQDQG-D\DQW0HQRQRI$'%·V2IILFH
RI 5HJLRQDO (FRQRPLF ,QWHJUDWLRQ H[DPLQH WKH LPSDFW D ULVLQJ
)RUPRUHLQIRUPDWLRQYLVLWZZZDGERUJ

Yin Hua Mai, Philip Adams, Peter Dixon, and Jayant Menon
No. 66 | November 2010
3HRSOH·V5HSXEOLFRI&KLQDLVOLNHO\WRKDYHRQWKHJURZWKDQGWHUPV QHZVFDOHQGDUDVS
RIWUDGHRILWVQHLJKERUV

)RUPRUHLQIRUPDWLRQYLVLWZZZDGERUJSXEOLFDWLRQV

0,QYHVWPHQW«&RQWLQXHGIURPSDJH $'%6LJQV-RLQW9HQWXUH«&RQWLQXHGIURPSDJH
LPSURYH HFRQRPLF FRQGLWLRQV DQG OLYHOLKRRG
RSSRUWXQLWLHVDVZHOODVKHOSWRUHGXFHSRYHUW\µ
VDLG$QWKRQ\0D[ZHOOHQHUJ\VSHFLDOLVWRI$'%·V
3DFLILF'HSDUWPHQW
$URXQG  RI WKH SRSXODWLRQ RI RYHU
PLOOLRQKDVDFFHVVWRJULGFRQQHFWHGSRZHU
ZKLFKLVODUJHO\FRQILQHGWRPDLQXUEDQDUHDV
:KHQVXSSOLHVDUHDYDLODEOHLQSURYLQFLDOFHQWHUV
WKH\ FDQ EH XQUHOLDEOH ZLWK UHJXODU SRZHU
RXWDJHV IRUFLQJ EXVLQHVVHV DQG LQGXVWU\ WR XVH
FRVWO\DQGSROOXWLQJGLHVHOJHQHUDWRUV
7KHILUVWWUDQFKHRIWKHLQYHVWPHQWSURJUDP
ZLOO VXSSRUW UXQRIULYHU K\GUR SODQWV LQ WKH
-DSDQ DQG GHPDQG KDV JURZQ DW DQ DYHUDJH
RID\HDUVLQFH+RZHYHUVXSSO\IDOOV
ZHOOEHORZGHPDQGOHDGLQJWRUHJXODUEODFNRXWV
DQG FKURQLF VKRUWDJHV ZKLFK DUH XQGHUPLQLQJ
WKHFRXQWU\·VHFRQRPLFDQGVRFLDOGHYHORSPHQW
0RUHRYHU PXFK RI WKH HOHFWULFLW\ LV JHQHUDWHG
IURP LQFUHDVLQJO\ XQFHUWDLQ GRPHVWLF VRXUFHV
RIFRDORUIURPHYHUPRUHFRVWO\LPSRUWHGFRDO
´7KH QHZ MRLQW YHQWXUH FRPSDQ\ ZLOO KHOS
,QGLDDFKLHYHLWVJRDORIUHGXFLQJWKHFRXQWU\·V
GHSHQGHQFHRQIRVVLOIXHOVZLOOFXWJUHHQKRXVH
JDVHPLVVLRQVDQGLPSURYHLWVHQHUJ\VHFXULW\µ
VDLG0LFKDHO%DUURZGLUHFWRURI$'%·V3ULYDWH
VRXUFHV E\  &XUUHQWO\ UHQHZDEOH HQHUJ\
DFFRXQWVIRURIWRWDOSRZHUFDSDFLW\LQ,QGLD
ZKLOHFRPHVIURPWKHUPDOSRZHUSODQWV³
PRVWO\FRDOILUHG³ZKLFKJHQHUDWHWKHPDMRULW\RI
WKHFRXQWU\·VFDUERQHPLVVLRQV7KHUHPDLQGHU
RI ,QGLD·V SRZHU FRPHV IURP K\GURSRZHU DQG
QXFOHDUSRZHU
´,QGLDQRZKDVWKHFDSDFLW\WRJHQHUDWHMXVW
RYHUPHJDZDWWVRIZLQGSRZHUEXWZLWK
WKHULJKWLQYHVWPHQWWKDWFRXOGLQFUHDVHWRDOPRVW
PHJDZDWWV$WWKHVDPHWLPHVPDOOK\GUR
SRZHUKDVWKHSRWHQWLDOWRJHQHUDWHDERXW
PHJDZDWWVRISRZHUDQGZKDW·VPRUHLVRIWHQ
1RUWKHUQ3URYLQFHDQGWKH$XWRQRPRXV5HJLRQ 6HFWRU 2SHUDWLRQV 'HSDUWPHQW 362' ZKR WKHEHVWZD\RISURYLGLQJHOHFWULFLW\WRORZLQFRPH
RI%RXJDLQYLOOHDVZHOODVDNLORYROWWUDQVPLV VLJQHGWKHDJUHHPHQWLQ1HZ'HOKL´:HKRSH KRXVHKROGV LQ UHPRWH DUHDVµ VDLG 'RQ 3XUND
VLRQOLQHLQ:HVW1HZ%ULWDLQ7KHWUDQVPLVVLRQ WKLV FRPSDQ\ ZLOO DOVR SURYLGH DQ H[DPSOH WR 6HQLRU,QYHVWPHQW6SHFLDOLVWZLWK$'%·V362'
IDFLOLW\ZLOOSURYLGHDFFHVVWRDERXWPHJDZDWW RWKHUIRUHLJQLQYHVWRUVORRNLQJDW,QGLD·VUHQHZ 8QGHU WKH MRLQW YHQWXUH DJUHHPHQW $'%
0: RI VSDUH JHQHUDWLRQ FDSDFLW\ IURP WKH DEOHHQHUJ\VHFWRUµ ZLOOLQYHVWXSWRPLOOLRQIRUDVWDNHLQ
/DNH+DUJ\+\GURSRZHU3ODQWDQGXSWR0: 8QGHULWV1DWLRQDO$FWLRQ3ODQRQ&OLPDWH WKH FRPSDQ\ 173& ZLOO KDYH D  KROGLQJ
RI ELRPDVVJHQHUDWHG HOHFWULFLW\ IURP SDOP RLO &KDQJHWKHJRYHUQPHQWKDVVHWDWDUJHWRIJHQ LQ WKH FRPSDQ\ ZLWK .\XVKX (OHFWULF 3RZHU
SODQWDWLRQV„ HUDWLQJ  RI LWV WRWDO SRZHU IURP UHQHZDEOH RZQLQJWKHUHPDLQLQJ„

 'HFHPEHU
 23325781,7,(6
23325781,7,(6

%XVLQHVV2SSRUWXQLWLHV
)RUFRQWUDFWRUVFRQVXOWDQWVDQGLQYHVWRUV

(QHUJ\ *RYHUQDQFHDQG3XEOLF0DQDJHPHQW ‡ 3KLOLSSLQHV/RDQ8UEDQ:DWHU6XSSO\DQG6DQLWD

‡ 5HJLRQDO7$3URPRWLQJ(QHUJ\(IILFLHQF\DQG
5HQHZDEOH(QHUJ\LQWKH*06
‡ 5HJLRQDO7$3URPRWLQJ5HQHZDEOH(QHUJ\&OHDQ
)XHOVDQG(QHUJ\(IILFLHQF\LQWKH*06
‡ /DR3HRSOH·V'HPRFUDWLF5HSXEOLF*UDQW6PDOO
‡ /DR3HRSOH·V'HPRFUDWLF5HSXEOLF7$&DSDFLW\
6WUHQJWKHQLQJRIWKH1DWLRQDO6WDWLVWLFV6\VWHP
‡ 9LHW1DP7$6XSSRUWIRUWKH3UHSDUDWLRQDQG
,PSOHPHQWDWLRQRIWKH5HVXOWVEDVHG6RFLRHFR
QRPLF'HYHORSPHQW3ODQ²
WLRQ3URMHFW/RDQ
0XOWLVHFWRU
‡ 9LHW1DP7$,QWHJUDWHG5XUDO'HYHORSPHQW6HF
WRU3URMHFWLQWKH&HQWUDO3URYLQFHV6XSSOHPHQ
DQG 0LQL +\GURHOHFWULF 3RZHU 'HYHORSPHQW ‡ 3KLOLSSLQHV7$5HVXOWVRULHQWHG6WUDWHJLF3ODQQLQJ WDU\
3URMHFW DQG 'HYHORSPHQW 0DQDJHPHQW IRU ,QFOXVLYH ‡ 5HJLRQDO5(7$6HOHFWHG(YDOXDWLRQ6WXGLHVIRU
‡ 9LHW1DP/RDQ:LQG3RZHU'HYHORSPHQW *URZWKIRUPHUO\6XSSRUWIRU6WUDWHJLF3ODQQLQJ 3KDVH
‡ $]HUEDLMDQ/RDQ3RZHU'LVWULEXWLRQ'HYHORS DQG'HYHORSPHQW ‡ 5HJLRQDO*UDQW/$2*06&RUULGRU7RZQ'HYHO
PHQW3URMHFW/RDQ ‡ 6UL/DQND7$&DSDFLW\'HYHORSPHQWIRU RSPHQW
/RFDO$XWKRULWLHVLQ8UEDQ6HUYLFHV'HOLYHU\ ‡ 5HJLRQDO*UDQW/$2*06&RUULGRU7RZQ'HYHO
(QYLURQPHQW
+HDOWK1XWULWLRQDQG6RFLDO'HYHORSPHQW RSPHQW,,
‡ 5HJLRQDO7$*UHHQKRXVH*DV(PLVVLRQV$VVHVV
‡ 5HJLRQDO7$(QKDQFLQJ3XEOLFDQG&LYLO6RFLHW\ ‡ 5HJLRQDO7$*06&RUULGRU7RZQ'HYHORSPHQW,,
PHQW0HWKRGRORJLHVLQ6XVWDLQDEOH7UDQVSRUW
3DUWQHUVKLSVLQ6HUYLFH'HOLYHU\LQWKH3DFLILF ‡ 5HJLRQDO/RDQ9,(*06&RUULGRU7RZQ'HYHORS
‡ 5HJLRQDO5(7$(QDEOLQJ&OLPDWH&KDQJH5H
‡ 6UL/DQND7$&DSDFLW\'HYHORSPHQWIRU PHQW
VSRQVHVLQ$VLDDQGWKH3DFLILF³'HVLJQRIWKH
/RFDO$XWKRULWLHVLQ8UEDQ6HUYLFHV'HOLYHU\ ‡ 5HJLRQDO/RDQ9,(*06&RUULGRU7RZQ'HYHORS
&OLPDWH3XEOLF²3ULYDWH3DUWQHUVKLS)XQG
‡ 3DNLVWDQ7$3XQMDE&LWLHV8WLOLWLHV5HIRUPDQG PHQW,,
‡ 9LHW1DP7$6XSSRUWWR&HQWUDODQG/RFDO*RY
2SHUDWLRQV ,PSURYHPHQW3LJJ\EDFNHGZLWK ‡ 5HJLRQDO/RDQ&$0*06&RUULGRU7RZQ'HYHO
HUQPHQWVLQ,PSOHPHQWLQJ8UEDQ(QYLURQPHQWDO
/RDQ RSPHQW
3URMHFWV
‡ %DQJODGHVK7$6XSSRUWLQJ8UEDQ3ULPDU\ ‡ 5HJLRQDO/RDQ&$0*06&RUULGRU7RZQ'HYHO
‡ ,QGRQHVLD7$,QVWLWXWLRQDO6WUHQJWKHQLQJIRUWKH
+HDOWK&DUH6HFWRU'HYHORSPHQW3URJUDP,, RSPHQW,,
:DWHU5HVRXUFHV6HFWRU
‡ 6UL/DQND*UDQW,PSURYLQJ&RPPXQLW\
‡ 5HJLRQDO 7$ &RDVWDO DQG 0DULQH 5HVRXUFHV 7UDGHDQG,QYHVWPHQWV
%DVHG :DWHU 6XSSO\ DQG 6DQLWDWLRQ LQ
0DQDJHPHQWLQWKH&RUDO7ULDQJOH6RXWKHDVW$VLD ‡ 5HJLRQDO7$&DSDFLW\%XLOGLQJIRU,PSOHPHQWLQJ
3RVW&RQIOLFW$UHDVRI-DIIQDDQG.LOLQRFK
‡ &DPERGLD7$&DSDFLW\%XLOGLQJIRU7RQOH6DS 3ULYDWH6HFWRU/HG,QWHJUDWLRQLQ6RXWK$VLD
FKLIRUPHUO\,PSURYLQJ5XUDO:DWHU6XSSO\
5HVRXUFH0DQDJHPHQWDQG&RQVHUYDWLRQ ‡ ,QGRQHVLD*UDQW6XVWDLQDEOH/LYHOLKRRG6\VWHPV
DQG6DQLWDWLRQ6HUYLFHVLQ3RVW:DU$UHDV
‡ 5HJLRQDO*UDQW'HYHORSLQJ6XVWDLQDEOH$OWHUQD IRU,QGLJHQRXV3HRSOHVLQ,QGRQHVLDQ+HDUWRI
WLYH/LYHOLKRRGVLQ&RDVWDO)LVKLQJ&RPPXQLWLHV
LQWKH&RUDO7ULDQJOH,QGRQHVLDDQG3KLOLSSLQHV
‡ /DR3HRSOH·V'HPRFUDWLF5HSXEOLF*UDQW3DNVH
&OHDQ(QYLURQPHQW0DQDJHPHQW3URMHFW
‡ 3HRSOH·V5HSXEOLFRI&KLQD/RDQ+DL5LYHU(VWXDU\
3ROOXWLRQ&RQWURODQG(FRV\VWHP5HKDELOLWDWLRQ
RI-DIIQD3HQLQVXOD
‡ 8]EHNLVWDQ/RDQ0)):DWHU6XSSO\DQG6DQLWD
WLRQ6HUYLFHV,QYHVWPHQW3URJUDP7UDQFKH
,QIUDVWUXFWXUH
‡ %DQJODGHVK7$3332SWLRQ6WXG\IRU8UEDQ
,QIUDVWUXFWXUH'HYHORSPHQWIRUPHUO\333
%RUQHR
‡ $]HUEDLMDQ/RDQ0)):DWHU6XSSO\DQG6DQLWD
WLRQ,QYHVWPHQW3URJUDP7UDQFKH
‡ 5HJLRQDO7$3UHSDULQJ,QYHVWPHQWLQ6HFWRU:LGH
$SSURDFKHVWR7UDGHDQG,QYHVWPHQW)DFLOLWDWLRQ
LQ6RXWK$VLD
3URMHFW 2SWLRQ6WXG\IRU%XON:DWHU6XSSO\6\VWHP
‡ /DR3HRSOH·V'HPRFUDWLF5HSXEOLF*UDQW5XUDO 7UDQVSRUWDQG&RPPXQLFDWLRQV
)LQDQFH $FFHVV,PSURYHPHQW3URMHFWDORQJWKH(DVW:HVW ‡ 9LHW1DP7$+R&KL0LQK&LW\5LQJ5RDGV 
‡ 5HJLRQDO5(7$$VVHVVLQJ)LQDQFLDO/DQGVFDSH (FRQRPLF&RUULGRUIRUPHUO\5XUDO,QIUDVWUXFWXUH ‡ 5HJLRQDO7$,PSURYLQJ5RDG6DIHW\LQ$6($1
DQG)RUPXODWLQJ0LOHVWRQHVIRU0RQHWDU\DQG 'HYHORSPHQWDORQJWKH(:(& ‡ ,QGLD7$&DSDFLW\%XLOGLQJIRU,QWHUPRGDO7UDQV
)LQDQFLDO,QWHJUDWLRQLQ$6($13KDVH,, ‡ /DR3HRSOH·V'HPRFUDWLF5HSXEOLF7$5XUDO$FFHVV SRUWSLJJ\EDFNHG
‡ 5HJLRQDO7$)DFLOLWDWLQJ%UDQFKOHVV%DQNLQJLQ ,PSURYHPHQW3URMHFWDORQJWKH(DVW:HVW(FR ‡ /DR3HRSOH·V'HPRFUDWLF5HSXEOLF*UDQWDQG
WKH3DFLILF QRPLF&RUULGRUIRUPHUO\5XUDO ,QIUDVWUXFWXUH 7$6RXWKHUQ/LQN7UDQVSRUW3URMHFWIRUPHUO\
‡ ,QGLD7$&DSDFLW\%XLOGLQJIRU&RPPHUFLDO%DQN 'HYHORSPHQWDORQJWKH(:(& 7UDQVSRUW6HFWRU'HYHORSPHQW3URMHFW
/HQGLQJIRU6RODU(QHUJ\3URMHFWV ‡ 6UL/DQND/RDQ/DJJLQJ/RFDO$XWKRULWLHV,QIUD
VWUXFWXUH'HYHORSPHQWIRUPHUO\/DJJLQJ5HJLRQV )RUPRUHLQIRUPDWLRQYLVLW
8UEDQ,QIUDVWUXFWXUH ZZZDGERUJ%XVLQHVV2SSRUWXQLWLHVQHZ
DVS

ASEAN = Association of Southeast Asian Nations; ASEAN+3 = Association of Southeast Asian Nations plus People’s Republic of China, Japan, and Republic of Korea; GMS = Greater Mekong Subregion;
MFF = multitranche financing facility; PPP = public–private partnerships; R-CDTA = Regional-Capacity Development Technical Assistance; RETA = regional technical assistance; TA = technical assistance.

'HFHPEHU 
$'%

2SHUDWLRQV8SGDWHV
D

9ROXPH1XPEHU‡'HFHPEHU
6RYHUHLJQ/HQGLQJ
3XEOLVKHU$QQ4XRQ  $'% KDV DSSURYHG WKLV \HDU  ORDQV WR  GHYHORSLQJ PHPEHU FRXQWULHV WRWDOLQJ
ELOOLRQ$SSURYHGORDQVIURP$'%·VRUGLQDU\FDSLWDOUHVRXUFHV2&5WRWDODERXW
(GLWRU)OR\G:KDOH\
ELOOLRQZKLOHELOOLRQFDPHIURP$'%·VFRQFHVVLRQDO$VLDQ'HYHORSPHQW)XQG
$VVRFLDWH(GLWRU0D/L]D6RODQR
$')
/D\RXW$UWLVW$OYLQ07XELR
1RQVRYHUHLJQ2SHUDWLRQV
$'%5HYLHZSURYLGHVDPRQWKO\ $'%KDVDSSURYHGWHQQRQVRYHUHLJQSURMHFWVZRUWKPLOOLRQ
HOHFWURQLFGLJHVWRIDFWLYLWLHVRI *UDQWV
WKH$VLDQ'HYHORSPHQW%DQN$'% $'% KDV DSSURYHG  JUDQWILQDQFHG SURMHFWV WRWDOLQJ  PLOOLRQ DQG  WHFKQLFDO
DVVLVWDQFHSURMHFWVZRUWKPLOOLRQ
2SLQLRQVDQGPDWHULDOVLQ$'%5HYLHZ
GRQRWQHFHVVDULO\UHIOHFWWKHRIILFLDO 5HFLSLHQWVRI$'%/RDQV 6RXUFHRI$'%/RDQV
YLHZVRI$'%0DWHULDOVPD\EHUHSULQWHG PLOOLRQ PLOOLRQ
ZLWKFUHGLWJLYHQWR$'%5HYLHZ &RXQWU\ $PRXQW $') 2&5
$VLDQ
%DQJODGHVK    'HYHORSPHQW
&RPPHQWVPD\EHHPDLOHGWR &DPERGLD   ²
)XQG

UHYLHZ#DGERUJ &KLQD3HRSOH
V  ²  2UGLQDU\
FDSLWDO
5HSXEOLFRI UHVRXUFHV
7RVXEVFULEHVHQGDQHPDLOWR *HRUJLD    
UHYLHZ#DGERUJID[DPHVVDJHWR ,QGLD  ² 
RUZULWHWR ,QGRQHVLD  ²  6RXUFHRI*UDQW)LQDQFHG
$'%5HYLHZ'HSDUWPHQWRI([WHUQDO .\UJ\]5HSXEOLF   ²
3URMHFWVPLOOLRQ
5HODWLRQV$VLDQ'HYHORSPHQW%DQN 0DUVKDOO,VODQGV   ²
$'%$YHQXH0DQGDOX\RQJ&LW\ 0RQJROLD   ² $') 
0HWUR0DQLOD3KLOLSSLQHV 1HSDO   ² &&)$3'5) 
2WKHUVRXUFHV 
3DNLVWDQ   ²
3DSXD1HZ*XLQHD   ² 7RWDO 
)RUWKHZHEYHUVLRQJRWR
ZZZDGERUJUHYLHZ 3KLOLSSLQHV  ²  $3'5) $VLD²3DFLILF'LVDVWHU5HVSRQVH)XQG&&) &OLPDWH
&KDQJH)XQG
6DPRD   ²
6UL/DQND   
7KDLODQG  ² 
6RXUFHRI7HFKQLFDO
8]EHNLVWDQ   
$VVLVWDQFH*UDQWV
,661 9LHW1DP    PLOOLRQ
7RWDO    $'%IXQGHG 
-DSDQ6SHFLDO)XQG 

$'%2QOLQH
² QLO
-)35 
5&,) 
&&) 
2WKHUVRXUFHV 
ZZZDGERUJ
7RWDO 
&&) &OLPDWH&KDQJH)XQG-)35 -DSDQ)XQGIRU3RYHUW\
5HGXFWLRQ5&,) 5HJLRQDO&RRSHUDWLRQDQG,QWHJUDWLRQ)XQG
„ 7RUHDG$'%5HYLHZRQOLQHJRWR
ZZZDGERUJUHYLHZ
1RQVRYHUHLJQ2SHUDWLRQVPLOOLRQ
„ )RULQIRUPDWLRQHPDLOLQIRUPDWLRQ#
3DUWLDO&UHGLW 3ROLWLFDO5LVN
DGERUJRUJRWRZZZDGERUJ 6HFWRU (TXLW\ /RDQ 7RWDO *XDUDQWHH *XDUDQWHH %/RDQ
„ 7RH[SORUHEXVLQHVVRSSRUWXQLWLHVZLWK (QHUJ\    ² ² ²
$'%JRWRZZZDGERUJ%XVLQHVV )LQDQFH     ² ²
2SSRUWXQLWLHV 7UDQVSRUWDQG,&7 ²   ² ² ²
:DWHU6XSSO\DQG    ² ² 
„ )RUSXEOLFDWLRQVJRWRZZZDGERUJ 2WKHU0XQLFLSDO
3XEOLFDWLRQV ,QIUDVWUXFWXUH
DQG6HUYLFHV
„ )RUWKHODWHVWQHZVJRWR 7RWDO     ² 
ZZZDGERUJ1HZV
² QLO,&7 LQIRUPDWLRQDQGFRPPXQLFDWLRQWHFKQRORJ\

D
$VRI2FWREHU
7RWDOVPD\QRWDGGXSEHFDXVHRIURXQGLQJ

 'HFHPEHU