Washington, D.C./London, February 26, 2014—
IFC, a member of the World Bank Group, will issue a 1 billion renminbi-denominated bond (equivalent to about $165 million) next month to increase foreign investment in China and support the internationalization of the Chinese currency. The issuance marks the largest on the London Stock Exchange by a multilateral institution.
“IFC is committed to supporting the deepening of China’s capital markets,” said IFC Vice President and Treasurer Jingdong Hua. “This issuance will help demonstrate the strong demand from international investors for offshore renminbi bonds, while providing an alternative source of renminbi funding for investment in the country.”
Xavier Rolet, CEO of London Stock Exchange Group, said:
London’s position as a leading international financial center is reflected in its ability to offer investors a wide range of innovative products providing access to asset classes around the world via a transparent, regulated market. China is one of the world’s largest and fastest growing economies and the new 1 billion renminbi-denominated bond, issued by IFC, listed on London Stock Exchange, provides investors with the opportunity to have direct exposure to this currency.”
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, promotes the microfinance industry, strengthens commercial banks, and develops the country's financial and capital markets. Mature financial and capital markets allow companies to efficiently raise financing so they can grow and create jobs.
IFC previously pioneered the international issuance of renminbi-denominated bonds in China (Panda bonds) and Hong Kong (Dim Sum bonds). IFC was also the first to set up a program to regularly issue offshore renminbi-denominated discount notes.
In China, IFC 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 $7 billion (around 42 billion yuan) in more than 270 projects in the country, including nearly 3 billion yuan in local-currency investments.
HSBC, ICBC, and JP Morgan have been appointed as lead arrangers for the bond.
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