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United States : IFC Becomes Largest Issuer of London-Listed Renminbi Bonds, Supporting Internationalization of Chinese Currency

August 5, 2014

IFC, a member of the World Bank Group, today increased by 750 million renminbi (approximately $121 million) an outstanding three-year London-listed bond, supporting the internationalization of the Chinese currency and encouraging foreign investment in China.

The 2.75 billion renminbi bond is now the largest debt in that currency ever listed on the London Stock Exchange.

IFC is strongly committed to supporting the development of China's capital markets and the internationalization of the renminbi," said IFC Vice President and Treasurer Jingdong Hua. "IFC's internationally rated triple-A bonds provide a unique bridge that links international investment with China's private sector financing needs."

The bond yields 2.04 percent. Investors were from the asset management community, based in Europe and the US. TD Securities was the sole arranger.

In March, IFC listed a 1 billion renminbi-denominated bond in London, doubling the issue the same month.

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. Mature financial and capital markets allow companies to efficiently 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). IFC was also the first to set up a program 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 $7 billion (around 42 billion yuan) in more than 270 projects in the country, including nearly 3 billion yuan in local-currency investments.

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Source: TendersInfo (India)

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