IFC Treasury Launches London Hub

 

IFC Treasury launches London hub to seize market opportunities and respond to client needs in real time.

On June 22, 2015 IFC opened a treasury hub in the city of London that will expand IFC's capital market activities in Africa, Europe and the Middle East. Until then, IFC managed its treasury activities out of the institution's Washington, D.C. headquarters.

IFC treasury provides core treasury services to the institution; raises capital for its liquidity and operational needs; offers treasury solutions to IFC clients-private sector companies in developing economies; and supports capital market development in emerging markets. 

The opening ceremony was attended by senior officials of the U.K treasury, City of London, London Stock Exchange, Bank of England, and key IFC counterparts in the global capital markets. 

"With a full-fledged treasury team based in London, we will be able to seize market opportunities and respond to the needs of our clients in neighboring regions in real time," said IFC Vice President and Treasurer Jingdong Hua. "We will also continue our efforts to highlight opportunities in emerging market currencies through strategic issuances listed in London."

"Britain is home to some of the most important and successful financial firms on the planet, benefitting businesses and working people across the country. We are committed to maintaining our position as a global financial center, and so I am delighted that the International Finance Corporation has decided to establish a treasury hub in London," said Harriet Baldwin, U.K. Economic Secretary to the Treasury. 

"That IFC treasury has chosen to base itself here recognizes the key role Britain's financial firms and markets play in channeling sustainable finance to emerging markets." 

In March 2014 IFC became the first and remains the largest multilateral institution to list renminbi-denominated bonds on the London Stock Exchange, which was followed by the issuance of IFC's first renminbi-denominated green bonds in June 2014. Prior to 2014, IFC pioneered the international issuance of renminbi-denominated bonds in China (Panda bonds) and Hong Kong (Dim Sum bonds). IFC was also the first to set up a program to regularly issue offshore renminbi-denominated discount notes. 

In November 2014, IFC became the first issuer of rupee-denominated Masala bonds listed on the London Stock Exchange, issuing 10-year, 10 billion Indian rupee bond (equivalent to $163 million) to increase foreign investment in India, mobilizing international capital markets to support infrastructure development in the country.

Most recently IFC became the first international issuer of offshore Turkish lira-denominated discount notes, a program set up with London Stock Exchange.

The core treasury team in Washington, D.C. will continue to serve as the global headquarters for IFC's treasury and capital market activities and cover North and Latin America and the Caribbean. A treasury hub in Asia is planned for 2016.

Click here to read the press release.