Nairobi, April 4, 2008—IFC, a member
of the World Bank Group, is working with the Central Bank of Kenya and
other stakeholders to help develop the country’s bond market. This will
increase long-term financing options for projects in such sectors as housing
“IFC is keen to work with the central
bank and other industry players to create a conducive regulatory environment
for the bond market and support potential bond issuers and intermediaries
that will bring transactions to the securities markets,” said Evans Osano,
IFC Program Manager, at a recent joint stakeholder workshop in Nairobi.
The workshop brought together industry
stakeholders who considered global best practices in bond market regulation,
structure, trading, and settlement. Participants included representatives
from the Ministry of Finance, the Central Bank of Kenya, the Capital Markets
Authority, the Retirement Benefits Authority, the Nairobi Stock Exchange,
the Central Depository and Settlement Corporation, commercial banks, investment
banks, insurance industry, fund managers, and stock brokers. Erik Thedeen,
Head of Fixed Income Markets at NASDAQ OMX, and Tom Lawless, former CEO
of the Bond Exchange of South Africa, were among the keynote presenters.
“Kenya’s bond market lacks liquidity.
There is need to develop the market and encourage transactions that will
move capital to infrastructure and other sectors where it is needed most,”
said Jackson Kitili, Central Bank of Kenya Director.
IFC, the World Bank, and the Swedish
International Development Cooperation Agency have launched the Efficient
Securities Markets Initiative to help develop well-functioning securities
markets, especially bond markets in Africa. The initiative will help securities
market regulators improve their expertise, assist in the design of effective
regulatory environments for long-term capital mobilization, and help strengthen
marketplaces and institutions that form the core of the securities industry.
The Efficient Securities Markets Initiative
works with regulators in East Africa to identify and address the main obstacles
to issuing bonds, including market structure and the high costs. The program
is also helping market participants introduce measures for strengthening
liquidity in the secondary markets using an appropriate market structure.
IFC, a member of the World Bank Group,
fosters sustainable economic growth in developing countries by financing
private sector investment, mobilizing private capital in local and international
financial markets, and providing advisory and risk mitigation services
to businesses and governments. IFC's vision is that people should have
the opportunity to escape poverty and improve their lives. In FY07, IFC
committed $8.2 billion and mobilized an additional $3.9 billion through
syndications and structured finance for 299 investments in 69 developing
countries. IFC also provided advisory services in 97 countries. For more
information, visit www.ifc.org.