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IFC Launches New Social Bond Retail program for Japanese Investors

Washington, D.C./Tokyo, July 3, 2017—IFC, a member of the World Bank Group, launched its first Social Bond Uridashi, offering an opportunity for Japanese retail investors to support investments that benefit low-income communities and women-owned enterprises in emerging markets.
The three-year dual-tranche bonds build on IFC’s innovative Social Bond Program launched earlier this year. The Uridashi bond channel enables Japanese household investors to participate in a new but rapidly growing category of Environment, Social and Governance (ESG) bonds.
IFC will use the bond proceeds to finance projects that help improve social outcomes for target populations such as small scale farmers, low-income households, women entrepreneurs etc. IFC’s financing enables companies to offer affordable health services, education, housing and other essential services to low-income people. The funds will also be used to support financial institutions that lend to women-owned enterprises.
“We are very pleased to be able to offer a new impact-investment product to the Japanese retail market,” said Benjamin Powell, the Head of Funding at IFC's Treasury. “As we have shown with our Green Bond program, we are focused on reaching a wide variety of investors with products that bring innovation and transparency to the ESG bond markets.”
IFC established the Social Bond Program to meet investor demand for regular benchmark issuance by merging two existing socially responsible bond products—the Banking on Women Bond Program and the Inclusive Business Bond Program which had raised $268 million and $296 million respectively since 2013.
The IFC Social Bond program is augmented by an annual impact report providing investors with detailed information on the underlying projects supported by the bonds. The program is aligned with the Social Bond Principles—a framework for the issuance and review of Social Bonds. IFC has played a leadership role in developing ESG bond markets as an active member of the Green and Social Bond Principles governing body.
Tokai Tokyo Securities is the sole arranger of the bonds. Utsunomiya Securities, Hamagin TT Securities, Nishi-Nippon City TT Securities, Hokuhoku TT Securities, and Takagi Securities are the distributors of the bonds.
“We are honored to partner with IFC in its first Social Bond issue in the Japanese market,” said Mr. Yamane, Tokai Tokyo Securities’ Senior Managing Executive Officer. “Given the increased interest in ESG investment, retail investors in Japan appreciate social contribution through this kind of bond investment. Tokai Tokyo Financial Group increasingly focuses on CSR and aims to continue actively arranging thematic bonds of this kind.”
Summary Terms of the IFC Social Bond Uridashi
Issuer
International Finance Corporation (IFC)
Currency
BRL
MXN
Tenor
3 years
Coupon Rate
6.4% p.a.
4.96% p.a.
Issue Amount
BRL 21,800,000
MXN 97,180,000
Denominations
BRL 10,000
MXN 10,000
Uridashi Period
July 3 - July 27, 2017
Issue Date
July 28, 2017
Maturity Date
August 6, 2020
About Tokai Tokyo Financial Group
Tokai Tokyo Financial Group (TTFG) is a comprehensive financial group that provides a wide range of financial services through its core subsidiary, Tokai Tokyo Securities Co., Ltd. TTFG is steadily growing through creative business strategies such as aggressive development of joint venture securities companies through collaboration with leading regional banks and expansion of platform business that supplies securities business infrastructure, operational functions, and financial products to other financial institutions.
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 markets and opportunities in the toughest areas of the world. In FY16, we delivered a record $19 billion in long-term financing for developing countries, leveraging the power of the private sector to help end poverty and boost shared prosperity. For more information, visit www.ifc.org .
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