IFC Opens London Markets to Commemorate First London-Listed Renminbi Bond

IFC, a member of the World Bank Group, raised 2 billion renminbi from a range of international investors through the bond offering earlier this month, signaling continued confidence in the outlook for the Chinese currency.

"IFC is committed to supporting the development of China’s capital markets and the internationalization of the renminbi," Cai said. “The success of IFC’s first London-listed issue demonstrates the strength of this platform for attracting international investment in offshore renminbi."

The Financial Secretary to the U.K. Treasury, Sajid Javid, said: "I am delighted that IFC has listed its first renminbi bond in London. This is a real vote of confidence. Already nearly two thirds of all renminbi trading outside of Mainland China and Hong Kong takes place in London and IFC’s decision to issue here provides yet more evidence that the capital is the western hub for renminbi. The government will continue to work very closely with the private sector, and the Chinese and Hong Kong authorities, to build a thriving renminbi market in London.”

IFC issued 1 billion in renminbi-denominated bonds on March 4 to support the internationalization of the Chinese currency. The issuance marked the first benchmark renminbi bond on the London Stock Exchange by a multilateral institution and attracted investors from around the world. Tapping continued investor interest, IFC doubled the issue on March 13. Proceeds of the bonds will be used for onshore investment in China.

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 access the financing they need to 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.

About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in more than 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and promote shared prosperity. In FY13, our investments climbed to an all-time high of nearly $25 billion, leveraging the power of the private sector to create jobs and tackle the world’s most pressing development challenges. For more information, visit www.ifc.org