IFC to issue 1 billion RMB-denominated bond in London
27 February 2014
Category: News, Asia, China, Global, United Kingdom
By Asia Asset Management
International Finance Corporation (IFC), a member of the World Bank Group, will issue a 1 billion renminbi-denominated bond (US$165 million) next month to increase foreign investment in China and support the internationalisation of the Chinese currency. The issuance marks the largest on the London Stock Exchange by a multilateral institution.
“IFC is committed to supporting the deepening of China’s capital markets,” said IFC Vice President and Treasurer Jingdong Hua. “This issuance will help demonstrate the strong demand from international investors for offshore renminbi bonds, while providing an alternative source of renminbi funding for investment in the country.”
Xavier Rolet, CEO of London Stock Exchange Group, said: “London’s position as a leading international financial centre is reflected in its ability to offer investors a wide range of innovative products providing access to asset classes around the world via a transparent, regulated market. China is one of the world’s largest and fastest growing economies and the new 1 billion renminbi-denominated bond, issued by IFC, listed on London Stock Exchange, provides investors with the opportunity to have direct exposure to this currency.”
IFC supports the development of China’s financial sector by working with the government to create a regulatory and legal environment that supports the growth of financial services, promotes the microfinance industry, strengthens commercial banks, and develops the country's financial and capital markets. Mature financial and capital markets allow companies to efficiently raise financing so they can grow and create jobs.
IFC previously pioneered the international issuance of renminbi-denominated bonds in China (Panda bonds) and Hong Kong (Dim Sum bonds). It was also the first to set up a programme to regularly issue offshore renminbi-denominated discount notes.
HSBC, ICBC, and JP Morgan have been appointed as lead arrangers for the bond.