Washington, D.C., March 19, 2014—
IFC, a member of the World Bank Group, today increased by 1 billion renminbi (approximately $162 million) an outstanding three-year London-listed renminbi bond to support the internationalization of the Chinese currency and encourage foreign investment in China.
The increase doubles the amount of IFC’s first London-listed renminbi bond, issued earlier this month. Over ninety percent of investors in the bond are from outside Asia; the order booked reached over 3 billion renminbi. The bond yields 1.95 percent. IFC will use the bond proceeds to support investments in China.
“The overwhelming response from international investors signals continued strong confidence in the Chinese currency, despite the recent volatility," said IFC Vice President and Treasurer Jingdong Hua. "IFC's internationally rated triple-A bonds provide a unique bridge that links international investment with China's private sector financing needs."
Investors included commercial banks (45%), central banks (39%), and corporates (16%). In terms of geographic distribution, 56% of investors were from Europe, Middle East and North Africa; 37% from the Americas, and 7% from Asia.
Bank of America Merrill Lynch, Industrial and Commercial Bank of China, and Standard Chartered Bank were the lead arrangers.
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.
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