Daiwa Securities Group, a Japanese securities broker reporting JPY 17.1 trillion (USD 186 billion) in assets as of March 2010, will be issuing bonds to Japanese retail and institutional investors to support the operations of the European Bank for Reconstruction and Development (EBRD), an international developmental finance institution focusing on Eastern Europe and Central Asia and headquartered in London [1].
While a value for the bond issue was not disclosed, Daiwa executed a similar bond issuance in October 2009 to raise USD 300 million for the International Finance Corp (IFC), a member of the World Bank Group that invests in development-focused financial institutions [2].
By Matthew Castner, Research Assistant
About Daiwa Securities Group
Daiwa Securities Group is a leading Japanese securities broker reporting JPY 17.1 trillion (USD 186 billion) in assets as of March 2010.
About European Bank for Reconstruction and Development (EBRD):
The bank began operations in 1991 upon the agreement of 40 countries and is now owned by 61 countries as well as the European Investment Bank and the European Union. It aims to finance operations that are both commercially viable and assist development in 29 countries in Eastern Europe and Central Asia. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro and small businesses as well as commercial banks and non-bank microfinance institutions (MFIs). As of the end of 2008, EBRD has operating assets worth EUR 5.2 billion, the equivalent of over USD 7 billion.
About International Finance Corporation (IFC):
A member of the World Bank Group, the International Finance Corporation (IFC) uses loan and debt securities, equity investments and guarantees with the intent of alleviating poverty. It invests in financial institutions and other companies in emerging markets as well as providing technical assistance. The IFC has 182 member countries that “collectively determine its policies, and approve investments.” In fiscal year 2009, its new investments totaled USD 14.5 billion.
Additional Resources:
[1] European Bank for Reconstruction and Development (EBRD): “EBRD/Daiwa team up to issue micro finance bonds,” May 20, 2010, http://www.ebrd.com/new/pressrel/2010/100520b.htm
[2] MicroCapital: “MICROCAPITAL.ORG STORY: IFC to Raise $300m in Bond Issue in Japan Market for Microfinance Programs,” by Kenny Kline, October 28, 2009, https://www.microcapital.org/microcapitalorg-story-ifc-to-raise-300m-in-bond-issue-in-japan-market-for-microfinance-programs/
MicroCapital’s Microfinance Universe profile: Daiwa Securities Group https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Daiwa+Securities+Group
MicroCapital’s Microfinance Universe profile: European Bank for Reconstruction and Development (EBRD): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29
MicroCapital’s Microfinance Universe profile: International Finance Corporation (IFC): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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