IFC, a member of the World Bank Group, is now the largest issuer of renminbi-denominated bonds on the London Stock Exchange, issuing bonds totaling 1 billion yuan (US$163 million) to increase foreign investment in China and support the internationalization of the Chinese currency.

 

The five-year issuance marks the second time IFC has issued a benchmark-sized renminbi bond this year. The bond is also the longest-dated renminbi bond by a triple-A rated issuer on the exchange. In all, IFC has issued about 4.25 billion yuan in renminbi-denominated bonds in London.

 

“IFC is committed to helping China deepen its capital markets,” said IFC vice-president and treasurer Jingdong Hua. “By offering different tenors for triple-A rated renminbi bonds, we are extending the yield curve and attracting a broad range of investors globally, bringing depth and diversity to China’s offshore markets.”

 

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. Efficient financial and capital markets allow companies to 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.

 

In China, IFC focuses on private sector investments that help fight climate change, enable rural development, and promote sustainable Chinese investments overseas. Since 1985, IFC has invested about US$7 billion in more than 270 projects in the country, including nearly 3 billion yuan in local-currency investments.

 

The bond yields 3.1%. Investors included central banks, official institutions, commercial banks, insurance companies, and asset managers globally.