The International Finance Corporation (IFC), a member of the US-based World Bank Group, recently issued ZAR 884 million (USD 97.1 million) in microfinance bonds to Japanese retail and institutional investors in an effort to expand financial access to poor people in developing countries. The 5-year securities are being managed and distributed by Daiwa Securities Group, a Japan-based financial services institution, in denominations of ZAR 100,000 (USD 11,200), with a coupon rate of 5.2 percent per annum. This transaction marks IFC’s fourth microfinance bond issue through Daiwa Securities Group since 2009 with a total amount of USD 745 million raised from Japanese investors. IFC will also invest an additional amount equal to the bond proceeds to support the same activities. As of year-end 2012, Daiwa Securities Group, which has operations in Asia, Europe and North America, reported total assets equivalent to USD 191 billion.
By Brian LeBlanc, Research Associate
About the International Finance Corporation (IFC)
A member of the US-based World Bank Group, the International Finance Corporation (IFC) offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2012, IFC reported total assets of USD 75.7 billion.
Sources and Additional Information:
Daiwa Securities Group press release, http://www.daiwa-grp.jp/data/current/press-3280-attachment.pdf
MicroCapital article, November 10, 2012, “MICROCAPITAL BRIEF: International Finance Corporation (IFC), Daiwa Securities of Asia to Issue Microfinance Bond in South Africa, Turkey,” https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-daiwa-securities-of-asia-to-issue-microfinance-bond-in-south-africa-turkey/
MicroCapital article, September 3, 2010, “MICROCAPITAL BRIEF: International Finance Corporation and Daiwa Securities Group Inc Announce Plan to Issue Bond, Expect to Raise $323m to Support Microfinance in Emerging Markets,” https://www.microcapital.org/microcapital-brief-international-finance-corporation-and-daiwa-securities-group-inc-announce-plan-to-issue-bond-expect-to-raise-323m-to-support-microfinance-in-emerging-markets/
MicroCapital article, October 28, 2009, “MICROCAPITAL.ORG STORY: IFC to Raise $300m in Bond Issue in Japan Market for Microfinance Programs,” https://www.microcapital.org/microcapitalorg-story-ifc-to-raise-300m-in-bond-issue-in-japan-market-for-microfinance-programs/
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