IFC aims to help develop local capital markets:

  • To create catalytic impact for future corporate bond issuances and facilitate financing through demonstration and signaling effect
  • To test and improve domestic processes for bond issuance and encourage changes in regulation (For example, cost of issuance or pension fund asset allocation.)

  • To provide access to a new breed of investors, particularly international investors

  • To help local markets de-couple from more volatile global funding sources

For local investors, IFC issuances introduce a high-quality new asset class to the domestic market.

Why local currency bond issuances?

  • Alternative to foreign currency borrowing, reducing various risks
  • Diversify sources of funding beyond banks and equity markets

  • Support major trends that stem from economic and financial growth
  • Issuers through; infrastructure development, privatization, securitization, and government decentralization create demand for bond issuances
  • Investors through: the growth of insurance and social security create institutional investors that have an appetite for long-term assets such as bonds

Strengthen the financial sector:

  • Transparency through public disclosure of business operations
  • Competition with local banking sector through disinter-mediation