An APEC Leaders
Endorsement
The APEC Business Advisory Council has formally recommended the exploration of WPU®-indexed instruments to APEC Leaders.
(We recommend that Ministers) “Explore the issuance of fixed rate long-term bonds in which servicing and repayment obligations are indexed to a basket of major international currencies. This should be designed to reduce borrower and lender risk from swings in the exchange rate of the currency of issue and thereby enable broader financing options.”
(We recommend that Ministers) “Establish a 10-year AAA-rated bond with interest and principal payments in a basket currencies meeting the requirements of a global institutional benchmark index and establish the Global Partnership for Sustainable Investment (GPSI) bond fund that can transact in these primary and secondary indexed securities.”
(We recommend that new Finance Ministers) “roadmap (Incheon Plan) include “collaboration of MDBs (ADB, CAF and WB) with institutional investors, interested member economies and the Asia-Pacific Infrastructure Partnership (APIP) to create a new financial instrument indexed to a currency basket specifically designed to minimize the impact of currency volatility that can attract large-scale capital for investment in infrastructure projects in developing economies.”
Why This Matters
This landmark recommendation recognizes that foreign exchange risk is one of the primary barriers preventing global capital from flowing into sustainable development projects in emerging markets. The WPU® mechanism directly addresses this barrier by indexing bond obligations to a diversified basket of major international currencies.
Formal Endorsement
The ABAC recommendation carries significant weight as an official advisory to APEC heads of government, representing 21 member economies.
Global Scope
APEC economies represent approximately 62% of global GDP and 47% of world trade, making this endorsement a powerful signal to capital markets.
Learn How the WPU® Works
Explore the mechanism behind the ABAC recommendation and how it reduces FX risk in cross-border development finance.