Shanghai, November 10, 2006
—The International Finance Corporation, the private sector arm of the World Bank Group, today launched its second Panda Bond issue in the Chinese domestic market. The RMB 870 million (approximately $110 million equivalent) seven-year bonds were placed with institutional investors in the national interbank market. The bonds carry a 3.2 percent coupon rate and were issued at 100 percent of face value. The joint lead managers are CICC and CITIC Securities.
IFC’s new transaction follows the RMB 1.13 billion first Panda Bond issue in October 2005 and marks the first time a multilateral organization has issued a follow-up bond in China. It builds on the success of IFC’s first Panda bond by providing a model for future high-grade issuers, helping deepen the capital markets and supporting long-term local currency financing for a number of Chinese companies engaged in sectors including agibusiness, health care, and small and medium enterprise finance. Supporting private sector development in these sectors is a priority for IFC in China.
"We are delighted to be launching IFC’s second Panda Bond issue” said Nina Shapiro, IFC Vice President, Finance and Treasurer. “We hope that this bond will facilitate further expansion of the non-government bond markets in China and will increase access to capital for private companies.”
IFC has committed financing to four domestic companies using the proceeds from the bond. IFC has agreed to provide RMB 64 million to Aier Eye Hospital Group, RMB 366 million to Nanjing City Commercial Bank, and RMB320 million to Shanghai Fosun Pharmaceuticals.
“The bond provides IFC with further opportunities to support high-quality domestic companies that need local currency financing,” said Richard Ranken, IFC’s Director for East Asia and the Pacific. “This second bond issue is an important part of IFC’s broader strategy aimed at deepening the domestic financial sector and local capital markets in China.”
IFC funds its lending activities by issuing bonds in the international capital markets. The Corporation’s securities, which are rated Aaa by Moody’s and AAA by S&P, have been issued in 35 different currencies. IFC’s funding program for fiscal year 2007 is around $3 billion.
Since 1985, IFC has invested more than $2.8 billion in 114 private sector companies in China.
About IFC
The International Finance Corporation, the private sector arm of the World Bank Group, is the largest multilateral provider of financing for private enterprise in developing countries. IFC finances private sector investments, mobilizes capital in international financial markets, facilitates trade, helps clients improve social and environmental sustainability, and provides technical assistance and advice to businesses and governments. From its founding in 1956 through FY06, IFC has committed more than $56 billion of its own funds for private sector investments in the developing world and mobilized an additional $25 billion in syndications for 3,531 companies in 140 developing countries. With the support of funding from donors, it has also provided more than $1 billion in technical assistance and advisory services. For more information, visit
www.ifc.org
.
