Istanbul, Turkey, and London, United Kingdom,
June 15, 2015—IFC, a member of the World Bank Group, is investing
in EMBonds, a London-based electronic marketplace for emerging market bonds,
to help develop robust capital markets that contribute to financial stability
and economic growth.
IFC and the Digital East Fund of Earlybird Venture Capital invested $6.8
million in equity to support EMBonds’ expansion across Europe and beyond.
Launched in 2015 as the world’s first electronic trading platform for
emerging market bonds, EMBonds currently covers Turkey, Hungary, South
Africa and Poland having signed on 16 institutions. It allows buyers and
sellers to trade directly rather than through the few global banks that
act as market-makers.
“IFC’s involvement plays a catalytic role for other investors in EMBonds
and for the acceptance of the trading system by potential clients, which
will allow us to establish a strong base and further expand our business
in emerging markets,” said Mehmet Artun, CEO of EMBonds.
EMBonds’ trading system enables banks in emerging markets to directly
trade local bonds as well as eurobonds with international clients such
as pension funds, hedge funds, and asset managers, increasing market efficiency
and transparency. Governments and corporations in developing countries
will benefit from a more liquid and transparent market for their debt,
which could reduce borrowing costs.
“Hundreds of startups each year are engaging with Earlybird and other
European venture capital firms to finance new financial technology businesses,”
says Roland Manger, an Earlybird partner and member of EMBonds´ board of
directors. “Rarely have we seen a proposal with such a profound potential
impact on the enterprises and sovereign entities in emerging markets finance.”
Atul Mehta, Director of TMT, Venture Capital & Funds Department of
IFC, said: “Developing local capital markets is a strategic priority for
IFC, as we realize that deep, efficient local capital markets are the foundation
of a thriving private sector, the key driver of jobs and growth. We support
pioneering companies like EMBonds, who contribute to this goal by developing
and implementing innovative technology.”
IFC’s TMT group focuses on improving access to information infrastructure
and services and using media to expand the delivery of public and private
services and promote innovation in industry and grassroots entrepreneurship.
Over the last twenty years IFC has provided more than $6.5 billion in financing
to more than 115 telecom and IT projects in developing countries.
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 about 100 countries, we use our capital, expertise, and
influence to help eliminate extreme poverty and boost shared prosperity.
In FY14, we provided more than $22 billion in financing to improve lives
in developing countries and tackle the most urgent challenges of development.
For more information, visit www.ifc.org
EMBonds has been established by Mehmet Artun and Kerim Acanal to bring
efficiency and transparency to the secondary trading of emerging markets
bonds. The company's aim is to give every investor and market maker an
equal representation in the market, irrespective of their size. For
more information, visit www.embonds.com