Nairobi, Kenya, July 14, 2016 – IFC,
a member of the World Bank Group, and Moody’s Investors Service yesterday
concluded a first investor seminar as part a broader effort to help
East African countries finance large infrastructure projects and build
their economies. Yesterday’s event highlighted opportunities in local
debt markets for institutional investors.
The IFC and Moody’s seminar in Nairobi provided
an opportunity for institutional investors to discuss and learn about links
between sovereign and sub-national debt issuers, sovereign rating methodology
for ratings assigned to government issuers, and infrastructure as an asset
class for institutional investors. The seminar was the first in a series
of events that will focus on new types of instruments and new types of
issuers in the bond market in East Africa.
Manuel Moses, IFC Country Manager, Kenya,
said, “Sustained economic growth in East Africa requires new infrastructure
and socio-economic progress. IFC’s strategy to improve access to financing
through debt capital markets can help meet the region’s infrastructure
requirements and improve the delivery of social services.”
Sylvia Chahonyo, General Manager, Moody’s
Investors Service, South Africa, said, “East Africa has shown strong resilience
at a time of global challenges and offers great potential in the coming
years. Investment in infrastructure will continue to be a crucial part
of the region’s growth story and we hope this seminar will help shape
the ongoing debate around this topic in the region.”
Debt capital markets provide opportunities
for long-term, local-currency financing to sub-national entities and utilities.
They also provide opportunities for institutional investors to fund infrastructure
and social services projects. The seminar provided an interactive forum
for investors to discuss and learn about the impact and contribution of
credit ratings in local capital markets and investment decisions.
The seminar was organized by the Efficient
Securities Market Institutional Development program in Africa, a partnership
between the World Bank Group and SIDA, the Swedish International Development
Cooperation Agency. The ESMID program supports the development of well-functioning
securities markets in order to improve financing for key sectors like housing,
infrastructure, and microfinance.
Since the start of the program in 2007, $1.6
billion has been raised through corporate bonds in East Africa.
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 opportunity where
it’s needed most. In FY15, our long-term investments in developing countries
rose to nearly $18 billion, helping the private sector play an essential
role in the global effort to end extreme poverty and boost shared prosperity.
For more information, visit www.ifc.org.
Moody’s Investors Service is a leading provider
of credit ratings, research, and risk analysis. Moody’s commitment and
expertise contributes to transparent and integrated financial markets,
and the firm’s ratings and analysis track debt covering approximately
120 sovereign nations, 11,000 corporate issuers, 21,000 public finance
issuers, ad 72,000 structured finance obligations. More information on