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IFC Pioneers Renminbi Bond Program in Hong Kong SAR to Finance Private Sector Projects in China


In Hong Kong:
Hannfried von Hindenburg

Phone: (852) 2509-8115

E-mail:
hvonhindenburg@ifc.org

In Washington:

Alexandra Klopfer
Phone: (202) 473-4645

E-mail:
aklopfer@ifc.org


Hong Kong, October 19, 2010—IFC, a member of the World Bank Group, will launch a pioneering program of Chinese renminbi-denominated bonds in Hong Kong, SAR, using the proceeds to finance private sector projects in support of China’s rural development and cleaner production.

“Following on the success of our Panda bond program, IFC is uniquely placed to tap the Hong Kong renminbi market in smaller denominations to fund specific priority projects in China,” said Nina Shapiro, IFC Vice President, Finance and Treasurer. “IFC’s renminibi bond program supports our pipeline of rural sector and climate change-related projects where Chinese private sector clients cannot yet directly go to the market to raise medium-term renminbi financing.”


In October 2005, IFC became the first international financial institution to issue Panda Bonds, renminbi-denominated bonds from a non-Chinese issuer sold in the domestic bond market of the People’s Republic of China. The first bond raised 1.13 billion renminbi to support four domestic projects, and was followed by a second Panda Bond issue of 870 million renminbi in November 2006 that funded three more projects.  


IFC has coordinated its East Asia and Pacific business out of its regional hub office in Hong Kong during the last 10 years, and IFC credit has been established in the Hong Kong dollar market over the past 20 years.  


“We welcome IFC’s announcement to launch a renminbi bond program in Hong Kong,” said Norman Chan, Chief Executive of the Hong Kong Monetary Authority. “This will not only add a top-quality issuer in Hong Kong’s renminbi bond market, but it also will demonstrate the importance international financial institutions attach to the development of an offshore renminbi platform in Hong Kong and their interest in using this platform to raise renminbi funding.”

IFC funds its lending activities by issuing bonds in the international capital markets. To date, IFC has issued bonds in 24 currencies and was among the first issuers in several countries, including China; Colombia; Greece; Hong Kong SAR, China; Malaysia; Morocco; Peru; Philippines; Portugal; Singapore; and Spain as well as in West Africa and Central Africa. IFC’s funding program for fiscal year 2011 is for up to $12.5 billion.


About IFC

IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit
www.ifc.org.