MICROCAPITAL BRIEF: International Finance Corporation (IFC) Issues $165m in Bonds to Support Women-owned Businesses

The International Finance Corporation (IFC), of the World Bank Group, reportedly has issued USD 165 million in five-year, AAA-rated bonds to support women-owned businesses in emerging markets [1]. An unspecified portion of the bond sales is being distributed by Daiwa Securities Group, a Tokyo-based financial services firm, will be sold exclusively to Japanese investors. Money raised through the bond sales will be disbursed via financial institutions in low- and middle-income countries to businesses in which women either (1) own a majority stake or (2) control the majority of senior leadership positions and own at least a one-fifth equity stake. No other firms have been identified as distributing any of the bonds. The bond program is expected to expand to include investors from other countries in 2014.

By Megan McGowan, Research Associate

Daiwa Securities Group:

Daiwa Securities Group Inc., founded in 1999, is a Tokyo-based holding company composed of a group of financial services firms that operate in Asia, Europe, Oceania and the United States. As of September 2013, the group reported total assets of JPY 18.7 trillion (USD 186 billion), return on assets of 0.81 percent and return on equity of 14.3 percent.

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. At fiscal year-end 2012, IFC reported 184 member countries and total assets of USD 76 billion.

Sources and Additional Resources:

[1] Reuters: “First Women’s Bond from World Bank Raises $165 million,” http://www.reuters.com/article/2013/11/06/worldbank-women-bond-idUSL2N0IR1IN20131106

MicroCapital, “Women Microfinance Clients Often Save More, Are More Loyal to Lenders,” November 14, 2013, https://www.microcapital.org/special-report-women-microfinance-clients-often-save-more-are-more-loyal-to-lenders/

MicroCapital, “International Finance Corporation (IFC) Loans $4m to FINCA Georgia to Support Micro- and Small Businesses, Entrepreneurs,” July 1, 2013, https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-loans-4m-to-finca-georgia-to-support-micro-and-small-businesses-entrepreneurs/

MicroCapital, In Japan, International Finance Corporation (IFC), Daiwa Issue $97m in Microfinance Bonds Denominated in South African Rand,” May 6, 2013, https://www.microcapital.org/microcapital-brief-in-japan-international-finance-corporation-ifc-daiwa-issue-97m-in-microfinance-bonds-denominated-in-south-african-rand/

MicroCapital Universe Profile: Daiwa Securities Group, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Daiwa+Securities+Group – Description_140_word_limit_

MicroCapital Universe Profile: International Finance Corporation (IFC), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29

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