Beijing, December 26, 2013
—IFC, a member of the World Bank Group, and the People's Bank of China today signed an agreement for IFC to invest 12 billion yuan ( around $2 billion) in China's interbank bond market. The agreement enables IFC to diversify its financial assets and enhance liquidity management, while increasing the ability to offer renminbi-denominated loans for private sector development in China
Under the agreement, IFC will invest 12 billion yuan in fixed income instruments in China’s interbank bond market.
IFC supports the development of China’s financial sector by working with the government to create a regulatory and legal environment that supports the growth of financial services, promote the microfinance industry, strengthen China’s commercial banks, and develop the country's financial markets.
"This agreement will significantly expand our ability to offer local-currency financing to support private sector development in China," said IFC EVP and CEO Jin-Yong Cai. "It complements our ongoing efforts to deepen China's domestic capital markets, a strategic priority for IFC."
IFC participates in China's domestic capital markets in a variety of ways, including direct market interventions, for example as the first non-resident issuer of renminbi-denominated bonds, so-called Panda bonds, in 2005. IFC has also issued renminbi-denominated bonds in Hong Kong SAR, so called Dim Sum bonds. Proceeds of IFC Panda and Dim Sum bonds were invested in companies that focus on health, financial, and other key services. To increase its ability to offer long-term, renminbi-denominated loans, IFC has also signed Master Swap Agreements with China Development Bank and China's Export-Import Bank.
In China, IFC also focuses on private sector investments that help fight climate change, enable rural development, and promote sustainable Chinese investments overseas. Since 1985, IFC has invested about $6 billion (around 36 billion yuan) in more than 200 projects in the country, including nearly 3 billion yuan in local-currency investments.
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in more than 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and promote shared prosperity. In FY13, our investments climbed to an all-time high of nearly $25 billion, leveraging the power of the private sector to create jobs and tackle the world’s most pressing development challenges. For more information, visit