Bogota, Colombia, January 31, 2012—IFC,
a member of the World Bank Group, and the World Bank are helping governments
in emerging markets simplify regulations for corporate bonds, changes designed
to increase the volume of non-government bond transactions and further
diversify and improve the performance of institutional investors’ portfolios.
In cooperation with Switzerland’s State Secretariat for Economic Affairs
(SECO), the National Association of Stock Brokers (Asobolsa), the National
Association of Fiduciaries (Asofiduciarias), the National Association of
Pension Funds (Asofondos) and with the participation of the Ministry of
Finance and the Financial Superintendence, IFC recently hosted a workshop
in Bogota for market participants to learn about the challenges and opportunities
of primary markets, and how they are relevant to the Colombian market.
IFC and World Bank’s Efficient Securities Markets Institutional Development
program, known as ESMID, is working with emerging market countries to address
barriers to the development of local and regional non-government bond markets.
The goal is to make it easier for local companies and non-government institutions
to issue bonds to investors, including local pension funds and insurance
“Colombia has a unique opportunity to carry out capital-market reforms
that will have an important impact in the economic development of the country,”
said Clemente del Valle, IFC’s ESMID Global Program Manager. “Savings
accumulated need adequate instruments for investment, and Colombia’s government
is committed to making the necessary and appropriate changes. The World
Bank Group is pleased to support this initiative with our ESMID program.”
The workshop included a presentation of the main findings of a study entitled
“Development of Corporate Bond Markets in the Emerging Markets.” Another
presentation focused on successful international practices for the development
of primary market regimes for corporate bonds.
The new report from IFC and the World Bank finds that increasing the supply
of corporate bonds requires introducing flexibility into the primary market
framework and providing a range of issuance options, such as hybrid regimes.
The study also stresses that there is no one-size-fits-all model: regulations
need to be tailored to each market, taking into consideration a country’s
economic and regulatory context.
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, providing
advisory services to businesses and governments, and mobilizing capital
in the international financial markets. In fiscal 2011, amid economic uncertainty
across the globe, we helped our clients create jobs, strengthen environmental
performance, and contribute to their local communities—all while driving
our investments to an all-time high of nearly $19 billion. For more information,