IFC Bond Provides Platform for Japanese Investments in Microfinance: IFC’s First Microfinance Bond.

In Washington, D.C.: 
Alexandra Klopfer 
Phone: (202) 473-4645 
E-mail: aklopfer@ifc.org 




Washington, D.C., October 27, 2009—IFC, a member of the World Bank Group, today 
announced it will list a bond to increase access to finance for poor and 
low-income entrepreneurs in developing countries. The bond will raise $300 
million equivalent, a comparable amount to IFC’s annual microfinance program in 
recent years. 

The listing and sale of IFC’s microfinance bond will be arranged by Daiwa 
Securities Group. The bond will be listed in Australian dollars and sales will 
be open to Japanese retail and institutional investors. IFC will direct an 
amount equal to the net proceeds of the bond to financial institutions that 
provide loans to microentrepreneurs in developing countries.   

“Micro and small enterprises are key engines of employment generation in 
developing countries, but they rarely have access to services provided by 
formal financial institutions,” said Lars Thunell, IFC Executive Vice President 
and CEO. “Through this bond, IFC can extend the impact of its own activities in 
microfinance while providing a platform for Japanese investors to create 
opportunities where they are needed most.” 

Microfinance is a powerful instrument for reducing poverty. It enables poor 
people to build assets, increase incomes, and reduce their vulnerability to 
economic stress. IFC focuses on commercially viable microfinance institutions 
that can attract private capital needed to scale up and respond to unmet 
demand. 

“Microfinance is becoming an attractive asset class for private investors 
because it has proven liquid and has performed consistently during recent 
market volatility,” said Nina Shapiro, IFC Vice President for Finance and 
Treasurer. 

As a result of the global economic crisis, financing needs in the microfinance 
sector will reach $1.8 billion annually through 2010. IFC microfinance projects 
reached a cumulative committed volume of $1.29 billion in fiscal year 2009.   

About IFC 
IFC, a member of the World Bank Group, creates opportunity for people to escape 
poverty and improve their lives. We foster sustainable economic growth in 
developing countries by supporting private sector development, mobilizing 
private capital, and providing advisory and risk mitigation services to 
businesses and governments. Our new investments totaled $14.5 billion in fiscal 
2009, helping channel capital into developing countries during the financial 
crisis. For more information, visit www.ifc.org.