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IFC, World Bank Program Works to Bolster Corporate Bond Markets in Emerging Markets


In Lima. Peru:        
Clara Ugarte Perrin, IFC        

Phone: +511-611-2501        

E-mail:
Cugarteperrin@ifc.org


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 companies.  


“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.


About IFC

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, visit
www.ifc.org.

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