Lima, Peru, January 30, 2012—
IFC, a member of the World Bank Group, and the World Bank are helping governments in emerging markets simplify regulations for corporate bonds, changes designed to increase the volume of non-government bond transactions and improve the diversification and performance of institutional investors’ portfolios.
In cooperation with the Swiss State Secretariat for Economic Affairs and the Securities Superintendence, IFC recently hosted a workshop in Lima for market participants to learn about the challenges and opportunities of primary markets, and how they apply to the Peruvian market.
IFC and World Bank’s Efficient Securities Markets Institutional Development program, known as ESMID, is working with emerging market countries to address barriers to the development of local and regional non-government bond markets. The goal is to make it easier for local companies and non-government institutions to issue bonds to investors, including local pension funds and insurance companies.
“Peru has a unique opportunity to carry out capital-market reforms that will have an important impact in the economic development of the country,” said Clemente del Valle, IFC’s ESMID Global Program Manager. “Savings have been accumulated that need adequate instruments for investment, and Peru’s a new government is committed to make the right changes. The World Bank Group is happy to support this initiative with our ESMID program.”
The workshop included a presentation of the main findings of a study entitled “Development of Corporate Bond Markets in the Emerging Markets.
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Another presentation focused on successful international practices for the development of primary market regimes for corporate bonds.
The new report from IFC and the World Bank finds that increasing the supply of corporate bonds requires introducing flexibility into the primary market framework and providing a range of issuance options, such as hybrid regimes. The study also stresses that there is no one-size-fits-all model: regulations need to be tailored to each market, taking into consideration a country’s economic and regulatory context.
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, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit
www.ifc.org
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