SEC, GSE approve IFC Cedi bond

The International Finance Corporation has received approval from the Securities and Exchange Commission and the Ghana Stock Exchange to regularly issue cedi-denominated bonds on the Accra Bourse.

This will enable the private sector arm of the World Bank to issue Cedi bonds to support local capital markets in the region and increasing access to local-currency finance for the private sector.

XYZ BUSINESS leant the bonds will be issued under the IFC Pan-African Domestic Medium-Term Note Programme launched in May 2012. The programme currently includes Botswana, Ghana, Kenya, Namibia, Rwanda, South Africa, Uganda, and Zambia.

“Supporting domestic capital market development is a priority for IFC because such markets efficiently intermediate funds in an economy,” said IFC VP and Treasurer Jingdong Hua. “The consent from the Ghanaian authorities enables us to support the deepening of the local capital markets and offer local-currency funding for priority sectors such as infrastructure.”

IFC has already issued local-currency bonds in emerging markets including Brazil, China, Nigeria and Russia.

Its local-currency bonds are rated triple-A by Moody’s Investors Service and Standard & Poor’s and sold in their respective markets to domestic and foreign institutional investors. Proceeds from local-currency bonds fund IFC projects that support private sector development in key areas such as infrastructure and access to finance for small and medium enterprises.

The IFC has provided more than 10 billion dollars in local-currency financing across 58 currencies—more than any other international finance institution.