Lagos/Washington, D.C., August 7, 2013—IFC,
a member of the World Bank Group, is working with the Securities and Exchange
Commission in Nigeria to launch the first long-term, local-currency bond
program in the country. The program will allow IFC to issue a series of
local-currency bonds totaling up to $1 billion, to deepen domestic capital
markets and support private sector development in Nigeria.
Nigeria is a leader in the implementation of the IFC Pan African Domestic
Medium Term Note Programme. The program enables IFC to raise long-term,
local-currency funding for private sector development in the region.
“SEC has spearheaded a number of reforms to accelerate the development
of Nigeria’s domestic capital markets, and the IFC program is an important
contribution to these efforts,” said Arunma Oteh, Director General of
the Securities and Exchange Commission. “It will enable regular domestic
issuances by an international, triple-A rated issuer, expanding the opportunities
for investors and increasing access to local-currency finance for Nigerian
In February 2013, IFC issued the first local-currency bond by a non-resident
issuer in Nigeria, raising 12 billion naira ($76.3 million). IFC issues
bonds as part of its regular program of raising funds for private sector
development, and to support the development of domestic capital markets.
In many cases IFC is the first, or among the first non-resident issuers.
IFC Vice President and Treasurer Jingdong Hua said: “A vibrant, local-currency
capital market is essential for any country to achieve its full economic
potential, and a cornerstone of our strategy to help countries achieve
sustainable growth. Our desire to put in place a program for regular naira-denominated
issuances reflects IFC’s commitment to the domestic capital markets in
Nigeria, and our growing investment to support private sector development
in the country.”
IFC’s strategy in Nigeria prioritizes infrastructure, especially power,
which was identified as the key constraint to private sector development;
agribusiness, the largest single contributor to GDP and the largest employer,
especially within the rural poor; the development of small and medium enterprises,
the country’s largest formal and informal employer, including for youth;
and housing. These strategic areas are also in line with the Government
of Nigeria’s key priorities.
IFC’s committed portfolio in Nigeria stands at $1.5 billion, the largest
country portfolio in Africa and the eighth-largest globally.
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 www.ifc.org