Washington, D.C., October 27, 2009—IFC,
a member of the World Bank Group, today announced it will list a bond to
increase access to finance for poor and low-income entrepreneurs in developing
countries. The bond will raise $300 million equivalent, a comparable amount
to IFC’s annual microfinance program in recent years.
The listing and sale of IFC’s microfinance bond will be arranged by Daiwa
Securities Group. The bond will be listed in Australian dollars and sales
will be open to Japanese retail and institutional investors. IFC will direct
an amount equal to the net proceeds of the bond to financial institutions
that provide loans to microentrepreneurs in developing countries.
“Micro and small enterprises are key engines of employment generation
in developing countries, but they rarely have access to services provided
by formal financial institutions,” said Lars Thunell, IFC Executive
Vice President and CEO. “Through this bond, IFC can extend the impact
of its own activities in microfinance while providing a platform for Japanese
investors to create opportunities where they are needed most.”
Microfinance is a powerful instrument for reducing poverty. It enables
poor people to build assets, increase incomes, and reduce their vulnerability
to economic stress. IFC focuses on commercially viable microfinance institutions
that can attract private capital needed to scale up and respond to unmet
demand.
“Microfinance is becoming an attractive asset class for private investors
because it has proven liquid and has performed consistently during recent
market volatility,” said Nina Shapiro, IFC Vice President for Finance
and Treasurer.
As a result of the global economic crisis, financing needs in the microfinance
sector will reach $1.8 billion annually through 2010. IFC microfinance
projects reached a cumulative committed volume of $1.29 billion in fiscal
year 2009.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to
escape poverty and improve their lives. We foster sustainable economic
growth in developing countries by supporting private sector development,
mobilizing private capital, and providing advisory and risk mitigation
services to businesses and governments. Our new investments totaled $14.5
billion in fiscal 2009, helping channel capital into developing countries
during the financial crisis. For more information, visit www.ifc.org.