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Lima, Peru, July 26, 2017
—IFC, a member of the World Bank Group, increased its efforts to develop Peruvian capital markets by issuing a three-year Peruvian soles denominated bond for PEN175 million soles (about $54 million) in the offshore market, paving the way for other issuers to raise Peruvian soles in international markets.
The Peruvian soles issuance was one of the first issuances opening up IFC’s global funding program for the next 12 months to raise funds for private sector development lending. The transaction was followed by a MXN2 billion Mexican pesos (about $112 million) ten-year issuance also by IFC, another sign of the strong international demand for bond issuances in Latin American currencies.
The Peruvian soles issuance is a part of IFC’s strategy to promote the development of capital markets in Peru. A key objective is to expand Peru’s corporate bonds market to create new funding alternatives for the country’s private sector. IFC has pioneered several initiatives to expand capital markets in Peru, such as issued a green bond denominated in soles in 2014 to finance climate-friendly investments.
Peru is a priority for IFC’s efforts to support the development of efficient debt capital markets, which have a vital role in channeling savings to productive investment and local currency financing to the private sector. Peru’s corporate bond markets today represent a less than five per cent of the country’s GDP and have a tremendous potential to expand in the coming years.
“Thanks to IFC’s international triple-A credit rating and our standing as a premier global issuer, we are able to help pave the way for other issuers to raise Peruvian Soles in the international markets, thus helping the development of the Peruvian capital markets, which is a necessity for the country’s economic growth, “said Jingdong Hua, IFC VP and Treasurer.
Listed in London, the issue generated strong international demand. It was distributed to multiple asset managers who have been increasingly looking for high quality issuances in some of the Latin American currencies such as Peruvian Soles. J.P. Morgan acted as the Lead Manager of the transaction.
“This trade continues the trend we have seen in recent months where investors are looking for high credit quality issuance in some of the more rare local currency markets such as ARS, COP & PEN,” said Stephen Dirou, Head of EMEA and LATAM Eurobonds at J.P. Morgan.
IFC relies on borrowings in international capital markets to finance its lending activities in emerging markets. IFC issues debt in a range of markets, currencies and structures. In the fiscal year ended June 2017, IFC’s funding program totaled $16.3 billion, including medium and long-term funding, financing in local currency and discount notes outstanding issuance. IFC is increasingly using its borrowings issuances as a tool to promote capital markets development in emerging and frontier markets.
The transaction also showcases IFC’s efforts to support Peru’s development after having invested and mobilized nearly $3.5 billion since 1956 in Peru. IFC’s strategy for Peru is now largely focused on providing support to key private sector actors who can expand the country’s infrastructure. IFC also offers products and services to expand access by microenterprises and to financing as well as access to financing for housing, health, and education.
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
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