Washington, D.C./Lusaka, May 19, 2014—IFC,
a member of the World Bank Group, has invested in bonds issued by
Bayport Financial Services Limited, Zambia’s largest microfinance lender,
to help the company raise funds in the domestic markets and expand services
for formally employed low- and middle-income Zambians.
IFC provided an anchor investment of 60 million kwacha, or approximately
$9.3 million, in Bayport's first issuance under its newly registered Medium
Term Note Program, set up earlier this year to enable the company to regularly
raise funds in the domestic capital markets. The issuance of 172 million
kwacha (approximately $26.5 million) was increased from 150 million kwacha
in response to strong investor demand during the book building process.
Bayport serves more than 70,000 clients in Zambia through its national
network of branches and mobile operations to serve customers in remote
areas. The company’s outstanding loan book stands at 890 million kwacha.
“We are proud to have pioneered the unlocking of the credit market to
ordinary Zambian citizens over the last 12 years, building an established
brand and a successful business supported by a strong IT platform, excellent
employees and robust systems and procedures,” said Prisca Shimwambwa,
Bayport Finance Director. “This bond is a significant step towards further
expanding our operations and promoting greater financial inclusion in Zambia.
The participation of global players such as IFC and KFW is testament to
the robustness of our business.”
“IFC is sending a strong signal of confidence as an anchor investor in
Bayport’s first bond issuance,” said Sylvain Kakou, IFC country head
for Zambia and Malawi. “By encouraging Zambian companies to issue in the
local markets, IFC can link domestic savings to private sector investment
while supporting the country’s nascent corporate bond market.”
IFC supports the development of domestic capital markets by issuing local
currency bonds and by helping domestic private sector companies to access
local bond markets. IFC also provides local currency financing to support
private sector development through loans and structured products.
In Zambia, IFC focuses on supporting domestic capital markets and access
to finance for small and medium enterprises, key drivers of economic growth
and jobs. As part of this effort IFC set up a local-currency bond program
to regularly issue in the domestic markets. In September 2013, IFC issued
its first kwacha denominated “Zambezi” bond, opening the market for non-resident
issuers into Zambia and providing significant momentum into the Zambian
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. Working with private
enterprises in more than 100 countries, we use our capital, expertise,
and influence to help eliminate extreme poverty and promote shared prosperity.
In FY13, our investments climbed to an all-time high of nearly $25 billion,
leveraging the power of the private sector to create jobs and tackle the
world’s most pressing development challenges. For more information, visit