Washington, D.C./London, March 4, 2014—
IFC, a member of the World Bank Group, today issued a 1 billion renminbi-denominated bond (equivalent to about $162 million) to support the internationalization of the Chinese currency. The issuance marks the first benchmark-sized bond on the London Stock Exchange by a multilateral institution, attracting investors from around the world for an order book of 3.5 billion renminbi.
“IFC is committed to supporting the development of China’s capital markets, and the IFC renminbi bond sends a strong signal of confidence at a time of global uncertainty,” said IFC Vice President and Treasurer Jingdong Hua. “The strong response from international investors indicates their support of the currency in the long term, which is particularly important as China seeks to internationalize the renminbi."
The three-year bond saw demand from a wide investor base. Investors included commercial banks (34%), central banks (31%), fund managers (26%), and corporates (9%). In terms of geographic distribution the majority of investors were in the Asia Pacific region (46%), followed by investors in the Americas (39%) and Europe, Middle East and North Africa (15%). The yield is 2 percent.
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 were the 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