Moscow/Washington, D.C., November 7,
2012—IFC, a member of the World Bank Group, has obtained approval
from the Russian Federal Service for Financial Markets to issue ruble-denominated
bonds in the country’s domestic capital markets. The approval enables
IFC to issue up to 23 billion Russian rubles (approximately $730 million
IFC is targeting a near-term issuance of up to 13 billion rubles (approximately
$410 million equivalent) in five-year bullet bonds, with the exact issuance
amount and timing to be determined based on market conditions. It will
be the first time that IFC issues bonds in Russia’s domestic capital markets.
Usually, IFC bonds are rated Triple-A by Moody’s Investors Service and
Standard & Poor’s.
“Well-functioning local capital markets are the foundation for private
sector development and provide greater resilience against capital flow
shocks,” said Tomasz Telma, IFC Director, Europe and Central Asia. “IFC
is working closely with the Russian regulatory authorities to strengthen
the country’s domestic capital markets, encourage greater investor participation,
and provide a model for other high-quality international issuers.”
IFC issues bonds as part of its regular program of raising funds for private
sector development lending. Proceeds from IFC bonds are swapped into floating-rate
U.S.-dollar funds that are available for IFC investments in emerging markets.
They may also be retained in the country in which they were raised for
on-lending to private sector companies.
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, mobilizing
capital in international financial markets, and providing advisory services
to businesses and governments. In FY12, our investments reached an all-time
high of more than $20 billion, leveraging the power of the private sector
to create jobs, spark innovation, and tackle the world’s most pressing
development challenges. For more information, visit www.ifc.org.