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IFC Plans Up to 23 Billion Rubles in Local-Currency Bonds to Support Russian Capital Markets

Moscow/Washington, D.C., November 7, 2012— IFC, a member of the World Bank Group, has obtained approval from the Russian Federal Service for Financial Markets to issue ruble-denominated bonds in the country’s domestic capital markets. The approval enables IFC to issue up to 23 billion Russian rubles (approximately $730 million equivalent).
IFC is targeting a near-term issuance of up to 13 billion rubles (approximately $410 million equivalent) in five-year bullet bonds, with the exact issuance amount and timing to be determined based on market conditions. It will be the first time that IFC issues bonds in Russia’s domestic capital markets. Usually, IFC bonds are rated Triple-A by Moody’s Investors Service and Standard & Poor’s.
“Well-functioning local capital markets are the foundation for private sector development and provide greater resilience against capital flow shocks,” said Tomasz Telma, IFC Director, Europe and Central Asia. “IFC is working closely with the Russian regulatory authorities to strengthen the country’s domestic capital markets, encourage greater investor participation, and provide a model for other high-quality international issuers.”
IFC issues bonds as part of its regular program of raising funds for private sector development lending. Proceeds from IFC bonds are swapped into floating-rate U.S.-dollar funds that are available for IFC investments in emerging markets. They may also be retained in the country in which they were raised for on-lending to private sector companies.  
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit .