Washington, D.C., July 19, 2013
—IFC, a member of the World Bank Group, has obtained approval from Zambia’s Securities and Exchange Commission to issue kwacha-denominated bonds of up to 2.5 billion Zambian kwachas (approximately $460 million). The approval enables IFC to issue local-currency bonds when market opportunities align with funding needs, supporting local capital markets and increasing access to local-currency finance for the private sector.
The bonds will be issued under the IFC Pan-African Domestic Medium-Term Note Programme, launched in May 2012 to facilitate regular bond issuances by IFC in the region. The program currently includes Botswana, Ghana, Kenya, Namibia, Rwanda, South Africa, Uganda, and Zambia.
“Vibrant domestic capital markets are the foundation for lasting growth—and in Africa, they can mobilize capital to close the financing gap for key sectors such as infrastructure and housing,” said Jingdong Hua, IFC Vice President and Treasurer. “The consent of the SEC marks an important step forward as we work in partnership with the government and authorities to strengthen the country’s domestic capital markets.”
IFC has issued local-currency bonds in emerging markets around the world, including Brazil, China, Nigeria and Russia. Often, IFC is the first international or corporate issuer of local-currency bonds in a market. When issuing local-currency bonds, IFC works closely with regulators and market participants to refine the regulatory framework, encouraging greater participation in the local markets and providing a model for other international issuers.
IFC local-currency bonds are rated triple-A by Moody’s Investors Service and Standard & Poor’s, and sold in their respective markets to domestic and foreign institutional investors. Proceeds from local-currency bonds fund IFC projects that support private sector development in key areas such as infrastructure and access to finance for small and medium enterprises. IFC has provided over $10 billion in local-currency financing across 58 currencies—more than any other international finance institution.
IFC has appointed Standard Bank as lead manager and Stockbrokers Zambia Ltd. as co-lead manager and sponsoring broker for the kwacha-denominated bond program.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org
.
