Local Capital Market Development

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Developing local capital markets is a strategic priority for IFC. Deep, efficient local capital markets create access to long-term, local-currency finance, and are the foundation for a thriving private sector—the key driver of jobs and growth. Sound local capital markets protect economies from capital-flow volatility and reduce dependency on foreign debt.

IFC promotes local capital markets by issuing local-currency bonds. We are often the first international, non-government issues of these bonds, paving the way for other issuers. Besides providing local currency finance to meet the needs of the private sector, we work with governments and regulators to promote reforms and policies supporting local capital markets and local currency finance.

IFC has issued bonds in 18 local emerging-market currencies, from Armenian dram and Chinese renminbi to Indian rupee, Peruvian soles, and Zambian kwacha.

 

Examples of our work:

 

Raising Resources for Private Sector Financing Needs

1. Our global offshore rupee “Masala” bond program included the first rupee bond listed on the London Stock Exchange.

2. IFC became the first international organization to list renminbi bonds on the London Stock Exchange.

3. We issued our inaugural offshore Rwandan franc “Twigire” bond. Proceeds are for private sector investment in Rwanda.

 

Helping Companies Access Capital Markets

1. IFC partnered with PT Ciputra Residence to provide the first partial credit guarantee for a local bond issue.

2. IFC supported the first bond issuance by Zambia’s largest microfinance lender, Bayport Financial Services Limited.

3. IFC supported the inaugural bond issuances by Seven Energy International Limited, purchasing $50 million in bonds issued by the company.