Beijing, September 28, 2005—
The International Finance Corporation, the private sector arm of the World Bank Group, today confirmed its intention to issue Chinese renminbi-denominated bonds in the domestic capital markets of China. IFC was pleased to be notified today by the Ministry of Finance that the State Council approved IFC’s application to issue renminbi bonds in accordance with the RMB Bond Issuance Regulations.
IFC appreciates the Ministry of Finance and the Chinese government’s efforts to encourage international institutions to participate in the bond market. This announcement is an important step to further developing China’s financial markets and assisting its expanding private sector. The proceeds of IFC’s bond issue will be used to finance private sector projects that IFC has already selected and appraised.
"IFC is very grateful for the opportunity to issue bonds in China’s domestic capital markets,” said IFC Acting Executive Vice President Assaad Jabre. State Council approval is the result of four years of cooperation with the Ministry of Finance and other relevant authorities during which IFC provided technical assistance and shared with the authorities its extensive experience in issuing in other domestic markets. “The IFC bond, when issued, will contribute to our broader strategy of helping China develop stronger and deeper domestic capital markets," Mr. Jabre said.
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 33 different currencies. IFC’s funding program for fiscal year 2006 is around $2 billion.
IFC has been the first, or among the first, nonresidents to issue in many currencies including Colombian pesos, Spanish pesetas, Portuguese escudos, Greek drachmae, Hong Kong dollars, Malaysian ringgit and Singapore dollars in the domestic markets, and in Czech koruna, Philippine pesos and Polish zloty in the eurobond markets.
Since 1985, IFC has invested more than $2 billion in 100 private sector companies in China.
The International Finance Corporation, the private sector arm of the World Bank Group, promotes sustainable private sector investment in developing and transition countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. Its 178 member countries provide its share capital and collectively determine its policies.
From its founding in 1956 through FY05, IFC has committed more than $49 billion of its own funds and arranged $24 billion in syndications for 3,319 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY05 was $19.3 billion for its own account and $5.3 billion held for participants in loan syndications.
