Bogota, Colombia, September 20, 2017
—IFC, a member of the World Bank Group, increased its efforts to bolster
capital markets in Colombia by becoming the first multilateral organization
to issue bonds in the country under a new regulation that facilitates multilateral
organizations’ issuances in the local market. This will pave the way for
other multilateral institutions to also tap the Colombian market for their
The COP33.7 billion issuance ($11.6 million)
in the local Colombian market was purchased mostly by insurance companies
that were interested in investing in local bonds from an international
institution with a triple-A credit rating like IFC. The issuance is part
of an IFC program for bond issuances in Colombia that could total as much
as $1 billion in the next three years.
The issuance leveraging on the new regulation
established by the Colombian government that allows multilaterals to issue
bonds in the local Colombian markets to institutional investors under the
umbrella of their global issuance programs.
The bond sale is also part of IFC’s strategy
to promote the development of capital markets in Colombia by introducing
a new funding alternatives and setting an example that can be used in the
future for further issuances by IFC or by other similar institutions. The
issuance is an example of harmonizing issuance and disclosure standards
for multilateral organizations across global markets. The issuance will
be used for IFC’s operations, including funding of projects Colombia.
“With this issuance we are showing again
IFC’s leadership in promoting the development of capital markets in Colombia,”
said Carlos Pinto, IFC’s manager for the Andean Region. “This operation
has set the groundwork for other issuances by multilaterals in the Colombian
market and we are very proud of our work with the Colombian government
to establish the right regulatory framework to make this happen,” Pinto
This transaction follows other landmark operations
in Colombia by IFC, such as fully subscribing the first green bond issuances
by two local banks earlier this year.
The new bond sale is listed in Colombian
Stock Exchange. Credicorp acted as the lead manager of the transaction
and the legal advisor was Gomez-Pinzón Zuleta.
Juan Pablo Córdoba, president of the Colombian
Stock Exchange (BVC), said that “the trust that IFC has placed with this
transaction demonstrates that capital markets are the perfect complement
for the long-term funding that is needed for large-scale projects in Colombia
and the region.”
IFC relies on borrowings in international
capital markets to finance its lending activities in emerging markets.
IFC issues debt in a range of markets, currencies and structures. In the
fiscal year ended June 2017, IFC’s funding program totaled $16.3 billion,
including medium and long-term funding, financing in local currency and
discount notes outstanding issuance. IFC is increasingly using its borrowings
issuances as a tool to promote capital markets development in emerging
and frontier markets.
The transaction also showcases IFC’s efforts
to support the development after having invested and mobilized nearly $8
billion since 1956 in Colombia. IFC’s strategy for Colombia is now largely
focused on providing support to key private sector actors who can support
the development of the country’s capital markets as well increase access
to finance for Colombian companies.
IFC, a member of the World Bank Group, is
the largest global development institution focused on the private sector
in emerging markets. Working with more than 2,000 businesses worldwide,
we use our capital, expertise, and influence to create markets and opportunities
in the toughest areas of the world. In FY17, we delivered a record $19.3
billion in long-term financing for developing countries, leveraging the
power of the private sector to help end poverty and boost shared prosperity.
For more information, visit www.ifc.org.