Washington, D.C., November 18, 2014--IFC,
a member of the World Bank Group, became the first institution to issue
a triple-A rated bond in Costa Rica's domestic markets, raising 5,000 million
colones, or approximately $10 million, for private sector investment in
emerging markets, including in Costa Rica.
The IFC Iraz˙ bond has a five-year maturity
and was sold entirely to domestic pension funds. The bond has a net yield
of 7.17 percent. IFC will invest proceeds of the bonds to support private
sector development in emerging markets.
"Deep, liquid capital markets are
the foundations for long-term growth because they efficiently intermediate
funds in an economy and connect savings with investment needs," said
IFC Vice President and Treasurer Jingdong Hua. "IFC is committed to
supporting the development of Costa Rica's capital markets."
"IFC's Iraz˙ bond provides a high
quality alternative for institutional investors,” Hector Maggi, General
Manager of the Pension Operator of the Costa Rican Social Insurance Fund
(CCSS). “We hope that the bonds will pave the way for other high quality
issuances in Costa Rica's domestic capital markets."
IFC supports capital market development
by issuing local currency bonds; offering customized structured, securitized
and derivate products to enable private sector companies to access capital
markets; and providing advice to promote market-friendly regulatory frameworks.
In Latin America and the Caribbean, IFC has issued local currency bonds
in Brazil, Colombia, the Dominican Republic, and Peru.
Since Costa Rica became a member of
IFC in 1956, IFC has invested $685.8 million in the country’s private
sector, including $99.7 million in syndications. We operate in sectors
such as infrastructure, with a particular focus on renewable energy, as
well as in financial markets, in order to facilitate access to finance
for small and medium enterprises. Through our advisory programs with the
private sector and the government, we support energy efficiency initiatives
as well as efforts to improve Costa Rica’s investment climate and promote
new and existing businesses.
Scotia Valores S.A. and Finanzas Corporativas
de Centro America are the lead arrangers for the bonds.
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