IFC, Daiwa stage bond issue

MANILA, Philippines - The International Finance Corp. (IFC), and Daiwa Securities Group plan to issue a bond this month that will expand access to finance for poor and low-income entrepreneurs in developing countries. IFC is a member of the World Bank Group.

The bond is expected to raise up to $323 million, roughly the same amount it raised in the past few 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.

Daiwa Securities Capital Markets Co. Ltd. will arrange the issue, 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.