Washington, D.C., July 25, 2016
—IFC, a member of the World Bank Group, issued a six-and-a-half-year 180 million Dominican peso-denominated bond (approximately $4 million) to support domestic capital markets and boost financing for micro-entrepreneurs in the Dominican Republic. This marks the second IFC bond issuance in the country’s domestic capital markets.
IFC will invest the bond proceeds in Banco de Ahorro y Crédito ADOPEM S.A., a leading microfinance institution in the Dominican Republic, to expand long-term, local currency lending to micro-entrepreneurs.
Since it was founded Banco ADOPEM has focused on supporting the most vulnerable sectors of society. Approximately 60% of its customers have access to financing exclusively through Banco ADOPEM. 92% of its customers are considered to be under the poverty line. After two years in the organization, 35% of these customers rise out of poverty.
"With this financing from IFC we continue to promote financial and economic inclusion, offering services that are tailored to the needs of our customers," said Sonia Reyes, Vice President of Finance and Accounting at Banco ADOPEM.
IFC issued its first bond in the Dominican Republic in 2012 and established a $100 million-equivalent bond program which allows IFC to regularly issue bonds in the country’s capital markets. The program was put in place with the strong support of the country’s government, regulatory authorities, and market participants.
"One of IFC's priorities in the Dominican Republic is to support financial inclusion and promote the development of the capital market. Through the Taino bond program, IFC is providing Dominican companies with long-term financing in local currency, and mobilizing funds to create jobs and help micro-entrepreneurs," said Guillermo Villanueva, IFC’s Resident Representative in the Dominican Republic. “Efficient domestic capital markets create alternative channels of funding for the private sector and reduce economies’ dependence on foreign debt."
IFC’s objectives in the Dominican Republic are to foster financial and economic inclusion, improve the country’s competitiveness, and promote investments in cleaner and affordable energy generation. As of July 2016, IFC had a $298 million active investment portfolio in the Dominican Republic, including $96 million mobilized from partnering financial institutions. Through its advisory programs with the private sector and government, IFC also supports access to finance, public- private partnerships, and improves the investment climate for the country.
The yield on IFC’s bond was 8.75%. Citinversiones de Títulos y Valores, S.A. (Puesto de Bolsa) acted as lead structurer on the transaction, and together with BHD León Puesto de Bolsa, S. A., acted as co-placement agents for the bond.
"Issuances like the Taino Bono II favor the diversification of the Dominican Republic’s capital markets, providing investment alternatives for domestic savings with the support of an issuer with the strong reputation of the International Finance Corporation," said Hamlet Hermann Morera, General Manager and Executive Vice President of the Stock Exchange of the Dominican Republic.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence, to create opportunity where it’s needed most. In FY15, our long-term investments in developing countries rose to nearly $18 billion, helping the private sector play an essential role in the global effort to end extreme poverty and boost shared prosperity. For more information, visit
www.ifc.org
