IFC To Raise $1b Local Currency Bond From Capital Market

The International Finance Corporation (IFC), private sector arm of the World Bank has reiterated its readiness to deepen Nigeria capital market and support private sector development in the country by raising $1 billion local currency bond.


The Vice President and Treasurer of IFC, Mr. Jingdong Hua stated this during the Nigeria’s debt capital markets conference hosted by the Securities and Exchange Commission (SEC) and IFC in Lagos yesterday. Hua said IFC’s decision is to look at how to develop Nigeria capital market.

According to him, a vibrant, local currency capital market is essential for any country to achieve its full economic potential, and a cornerstone of IFC strategy to help countries achieve sustainable growth.  “Our desire to put in place a programme for regular naira denominated issuances reflects IFC’s commitment to the domestic capital markets in Nigeria, and our growing investment to support private sector development in the country.”

He affirmed that IFC during its last financial year ended June, 2013 invested $1.5 billion in Nigeria which is 30 per cent of entire money invested in Sub-Sahara Africa. “IFC’s committed portfolio in Nigeria stands at $1.5 billion, the largest country portfolio in Africa and the eighth-largest globally”, he said.

He added that IFC’s strategy in Nigeria is to prioritise infrastructure, especially power, which was identified as the key constraint to private sector development; agri-business, the largest single contributor to gross domestic product (GDP) and the largest employer, especially within the rural poor; the development of small and medium enterprises, the country’s largest formal and informal employer, including for youth and housing. “These strategic areas are also in line with the Government of Nigeria’s key priorities”, he stated.

Speaking at the programme, the Director General of SEC, Ms. Arunma Oteh said the capital market has been part of the development being witnessed in Nigeria today as 18 states issued $3.5 billion bond. Oteh while highlighting some of the key achievements and challenges within the last few years stated that the conference will provide the Nigerian market a unique opportunity to leverage the IFC’s wealth of experience in both developed and developing markets to boost capacity.