Santo Domingo, Dominican Republic, May
23, 2013—IFC Vice President and Treasurer Jingdong Hua said today
that private sector development is key to supporting long-term growth and
poverty reduction in the Dominican Republic. Hua is visiting the country
for the first time as VP and Treasurer of IFC, a member of the World Bank
Hua met with government and regulatory officials to discuss how IFC can
support the development of the domestic capital markets. He also met with
business leaders to explore opportunities where IFC can improve investor
confidence, increase access to finance for small businesses, and promote
private sector investment in renewable energy and other strategic areas.
“IFC is committed to private sector development and inclusive growth in
the Dominican Republic,” Hua said. “Domestic capital markets are the
foundation for this because they create access to long-term, local-currency
finance for the private sector, the key drivers of jobs and growth.”
In addition to providing investment
and advisory services, IFC supports local capital markets by issuing local-currency
bonds, often paving the way for other issuers. This creates access to local-currency
finance for the private sector while providing a viable channel for domestic
savings to be directed into productive long-term investments. IFC also
provides local currency finance to meet the needs of the private sector.
In December 2012, IFC issued a 390 million
Dominican peso bond (approximately $10 million) to support the development
of capital markets in the Dominican Republic and increase the availability
of local-currency financing for private sector companies. The IFC
“Taino” Bond was the first domestic placement by an international triple-A-rated
issuer in the Dominican Republic.
IFC invested the proceeds from the bond
in La Nacional and Fondesa, two local financial institutions, to expand
access to finance for micro, small, and medium enterprises and loans for
low-income housing in the Dominican Republic.
IFC issues bonds as part of its regular
program of raising funds for private sector development, and to support
the development of local capital markets in emerging economies. In Latin
America and the Caribbean, IFC has also issued local-currency bonds in
Brazil, Colombia, and Peru. IFC bonds are rated triple-A by Moody’s Investors
Service and Standard & Poor’s.
In the Dominican Republic, IFC focuses
on fostering financial and economic inclusion, improving the country's
competitiveness, addressing climate change and reducing the country's energy
bill. Since 1961, IFC has invested $937.9 million in the country’s private
sector, including $292.6 million mobilized from other financiers.
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.