Published: November 4, 2012
Development finance institution teams with Daiwa Securities on rand- and lira-denominated deal.
The IFC is preparing to issue a microfinance bond to support poor and low-income entrepreneurs in emerging markets.
The four-year paper will be issued in two tranches – one in South African rand worth ZAR417mn (US$47.5mn) and with a yield of 4.68%, the other in Turkish lira of TRY145.7mn (US$81mn) with a yield of 5.23%. The bonds will be issued by Daiwa Securities Group and sold to Japanese retail and institutional investors.
The IFC claims that microfinance can help to reduce poverty by allowing deprived people to build assets, increase income and reduce vulnerability to economic stress.