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IFC, Daiwa Announce Second Bond to Support Microfinance in Emerging Markets

Tokyo, Washington, D.C., September 1, 2010 —IFC, a member of the World Bank Group, and Daiwa Securities Group plan to issue a bond later this month that will expand access to finance for poor and low-income entrepreneurs in developing countries.
The bond is expected to raise up to $323 million, a comparable amount to IFC’s microfinance program in recent years. IFC will invest an amount at least equal to the bond proceeds to support microfinance activities.  The notes will be issued under IFC’s Global Medium-Term Note Program.
The issue will be arranged by Daiwa Securities Capital Markets Co. Ltd., the wholesale securities firm under Daiwa Securities Group, and distributed by Daiwa Securities Co. Ltd. to Japanese retail and institutional investors.
Microfinance is a powerful instrument for reducing poverty.  It enables poor people to build assets, increase incomes, and reduce their vulnerability to economic stress.  IFC focuses on commercially viable microfinance institutions that can attract private capital needed to scale up and respond to unmet demand.  Japanese investors are helping meet the need as well through their investments in the microfinance bond, indirectly contributing to poverty reduction.
This will be IFC’s second microfinance bond.  The first issue in November 2009 raised about 25 billion Japanese yen.
The bond is an example of Daiwa’s Impact Investment initiative.  Under this initiative, Daiwa Securities Group actively pursues its commitment to social responsibility by seeking out investments that achieve social impact while attaining appropriate financial returns.
Summary Terms
Issue size
AUD 142mn
ZAR 1,453mn
Circa 3 years
Circa 3 years
4.0% per annum
5.7% per annum
AUD 1,000
ZAR 10,000
Offering Period
September 9 -September 16, 2010
Delivery of the Notes in Japan
September 22, 2010
Maturity Date
September 24, 2013
September 26, 2013
Aaa (Moody’s), AAA (S&P)
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit .
About Daiwa
Daiwa Securities Group Inc., headquartered in Tokyo, Japan, is the holding company of group companies that provide a broad range of investment and financial services. Brokerage of equities, bonds, derivatives and other financial products, investment banking services such as underwriting and M&A advisory, asset management for retail and institutional clients, as well as venture capital and principal investments are included in these services. A total of 16,000 employees work for the Group around the world. Customers’ assets under custody totaled JPY42.2 trillion and assets under management of the Group’s two asset management companies totaled JPY12.8trillion as of the end of 2009. The Group has its operational base around the world, including Japan, the US, Europe, and Asia Oceania. Through this global network, the Group provides a broad range of services to fulfill the needs of its clients worldwide.