The International Finance Corporation (IFC), a member of the US-based World Bank Group, will issue a microfinance bond to Japanese retail and institutional investors in an effort to expand financial access for poor people in South Africa and Turkey. The four-year bonds will be offered until November 16, 2012, and will mature on November 21, 2016. The bond will carry an annual interest rate of 4.68 percent in South Africa and 5.23 percent in Turkey. Daiwa Securities Group, a Japan-based financial services firm that manages USD 111 billion in assets, will arrange and distribute the bond issue.
IFC will invest an additional amount equal to the bond proceeds to support microfinance activities in the same countries.
Further deals on the bond have not been released.
By Charlotte Newman, Research Associate
About International Finance Corporation
A member of the 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 2011, IFC has 182 member countries, total assets of USD 68.5 billion and USD 12.2 billion mobilized to 518 projects.
Sources and Additional Resources:
Daiwa Securities Group Press Release: “IFC to Issue Microfinance Bond Via Daiwa to Support Low-Income Low-Income Entrepreneurs in Emerging Markets,” http://www.daiwa-grp.jp/data/current/press-3219-attachment.pdf
MicroCapital.org story, November 6, 2012, “MICROCAPITAL BRIEF: International Finance Corporation (IFC) Commits Technical Assistance to Indian Credit Bureau, High Mark,” http://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-commits-technical-assistance-to-indian-credit-
MicroCapital.org story, March 1, 2011, “MICROCAPITAL BRIEF: Daiwa Securities Group of Japan Raises $236m for Retail Microfinance Fund to Be Managed by Developing World Markets (DWM) Asset Management LLC of USA,” http://www.microcapital.org/microcapital-brief-daiwa-securities-group-of-
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