Santo Domingo, Dominican Republic, May 23, 2013—
IFC Vice President and Treasurer Jingdong Hua said today that private sector development is key to supporting long-term growth and poverty reduction in the Dominican Republic. Hua is visiting the country for the first time as VP and Treasurer of IFC, a member of the World Bank Group.
Hua met with government and regulatory officials to discuss how IFC can support the development of the domestic capital markets. He also met with business leaders to explore opportunities where IFC can improve investor confidence, increase access to finance for small businesses, and promote private sector investment in renewable energy and other strategic areas.
“IFC is committed to private sector development and inclusive growth in the Dominican Republic,” Hua said. “Domestic capital markets are the foundation for this because they create access to long-term, local-currency finance for the private sector, the key drivers of jobs and growth.”
In addition to providing investment and advisory services, IFC supports local capital markets by issuing local-currency bonds, often paving the way for other issuers. This creates access to local-currency finance for the private sector while providing a viable channel for domestic savings to be directed into productive long-term investments. IFC also provides local currency finance to meet the needs of the private sector.
In December 2012, IFC issued a 390 million Dominican peso bond (approximately $10 million) to support the development of capital markets in the Dominican Republic and increase the availability of local-currency financing for private sector companies.
The IFC “Taino” Bond was the first domestic placement by an international triple-A-rated issuer in the Dominican Republic.
IFC invested the proceeds from the bond in La Nacional and Fondesa, two local financial institutions, to expand access to finance for micro, small, and medium enterprises and loans for low-income housing in the Dominican Republic.
IFC issues bonds as part of its regular program of raising funds for private sector development, and to support the development of local capital markets in emerging economies. In Latin America and the Caribbean, IFC has also issued local-currency bonds in Brazil, Colombia, and Peru. IFC bonds are rated triple-A by Moody’s Investors Service and Standard & Poor’s.
In the Dominican Republic, IFC focuses on fostering financial and economic inclusion, improving the country's competitiveness, addressing climate change and reducing the country's energy bill. Since 1961, IFC has invested $937.9 million in the country’s private sector, including $292.6 million mobilized from other financiers.
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
.
