Lima, Peru, July 26, 2017 —IFC, a member
of the World Bank Group, increased its efforts to develop Peruvian capital
markets by issuing a three-year Peruvian soles denominated bond for PEN175
million soles (about $54 million) in the offshore market, paving the way
for other issuers to raise Peruvian soles in international markets.
The Peruvian soles issuance was one of the first issuances opening up IFC’s
global funding program for the next 12 months to raise funds for private
sector development lending. The transaction was followed by a MXN2 billion
Mexican pesos (about $112 million) ten-year issuance also by IFC, another
sign of the strong international demand for bond issuances in Latin American
The Peruvian soles issuance is a part of IFC’s strategy to promote the
development of capital markets in Peru. A key objective is to expand Peru’s
corporate bonds market to create new funding alternatives for the country’s
private sector. IFC has pioneered several initiatives to expand capital
markets in Peru, such as issued a green bond denominated in soles in 2014
to finance climate-friendly investments.
Peru is a priority for IFC’s efforts to support the development of efficient
debt capital markets, which have a vital role in channeling savings to
productive investment and local currency financing to the private sector.
Peru’s corporate bond markets today represent a less than five per cent
of the country’s GDP and have a tremendous potential to expand in the
“Thanks to IFC’s international triple-A credit rating and our standing
as a premier global issuer, we are able to help pave the way for other
issuers to raise Peruvian Soles in the international markets, thus helping
the development of the Peruvian capital markets, which is a necessity for
the country’s economic growth, “said Jingdong Hua, IFC VP and Treasurer.
Listed in London, the issue generated strong international demand. It was
distributed to multiple asset managers who have been increasingly looking
for high quality issuances in some of the Latin American currencies such
as Peruvian Soles. J.P. Morgan acted as the Lead Manager of the transaction.
“This trade continues the trend we have seen in recent months where investors
are looking for high credit quality issuance in some of the more rare local
currency markets such as ARS, COP & PEN,” said Stephen Dirou, Head
of EMEA and LATAM Eurobonds at J.P. Morgan.
IFC relies on borrowings in international capital markets to finance its
lending activities in emerging markets. IFC issues debt in a range of markets,
currencies and structures. In the fiscal year ended June 2017, IFC’s funding
program totaled $16.3 billion, including medium and long-term funding,
financing in local currency and discount notes outstanding issuance. IFC
is increasingly using its borrowings issuances as a tool to promote capital
markets development in emerging and frontier markets.
The transaction also showcases IFC’s efforts to support Peru’s development
after having invested and mobilized nearly $3.5 billion since 1956 in Peru.
IFC’s strategy for Peru is now largely focused on providing support to
key private sector actors who can expand the country’s infrastructure.
IFC also offers products and services to expand access by microenterprises
and to financing as well as access to financing for housing, health, and
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in emerging markets. Working
with more than 2,000 businesses worldwide, we use our capital, expertise,
and influence to create markets and opportunities in the toughest areas
of the world. In FY16, we delivered a record $19 billion in long-term financing
for developing countries, leveraging the power of the private sector to
help end poverty and boost shared prosperity. For more information, visit