Washington, D.C., December 3, 2012—IFC,
a member of the World Bank Group, today launched a 390 million Dominican
peso bond (approximately $10 million) to support the development of capital
markets in the Dominican Republic and increase the availability of
local-currency financing for private sector companies.
The IFC Taino Bond is the first domestic placement by an international
triple-A rated issuer in the Dominican Republic. It is also the first IFC
bond in Latin America and the Caribbean whose proceeds are directly linked
to investments in the local private sector. Proceeds from the bond will
be used to expand access to finance for micro, small, and medium enterprises
and loans for low-income housing in the Dominican Republic.
“Vibrant domestic capital markets are the foundation for shared prosperity
and lasting growth,” said IFC Vice President and Treasurer Jingdong Hua.
“Supporting the development of such markets is a priority for IFC, particularly
in smaller economies where we can have greater impact by providing a model
for other issuers and encouraging increased participation in the local
IFC will directly lend the bond proceeds to private sector companies. This
creates access to local-currency finance for the private sector while providing
a viable channel for domestic savings to be directed into productive long-term
Ary Naïm, IFC Country Head for Haiti and the Dominican Republic, said:
“The IFC Taino Bond supports the Dominican government’s efforts to strengthen
the country’s domestic capital markets. It offers a high-quality investment
alternative for institutional investors and makes available funds that
can be put to work in the local economy, particularly in areas that are
a priority for the country.”
The bond is the result of a three-year collaborative process among IFC,
local government and regulatory authorities, and market participants.
IFC’s objectives in the Dominican Republic are fostering financial and
economic inclusion, improving the country’s competitiveness, and promoting
investments in cleaner and affordable energy generation. Since 1961, IFC
has invested $782 million in the country’s private sector.
In Latin America and the Caribbean, IFC has issued local-currency bonds
in Brazil, Colombia, and Peru. IFC issues bonds as part of its regular
program of raising funds for private sector development, and to support
the development of local capital markets in emerging economies. IFC bonds
are rated triple-A by Moody’s Investors Service and Standard & Poor’s.
Advisors in the early stages of the transaction were BHD Valores and JP
Morgan. The Dominican law firm OMG provided legal advice to IFC. Citi was
lead manager and sole underwriter of the transaction.
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, mobilizing
capital in international financial markets, and providing advisory services
to businesses and governments. In FY12, our investments reached an all-time
high of more than $20 billion, leveraging the power of the private sector
to create jobs, spark innovation, and tackle the world’s most pressing
development challenges. For more information, visit www.ifc.org.