The International Finance Corp, the World Bank’s private sector arm, plans to issue local currency bonds in ten African markets from next year to build capital in one of the world’s fastest growing regions.
Jingdong Hua, vice president and treasurer at IFC, said the group is looking at Rwanda, Nigeria, South Africa, Ghana, Zambia, Namibia, Botswana, Uganda, Kenya and the West Africa franc bloc.
The bonds would be priced in the likes of South Africa rand, Botswana pula, Nigerian naira, Ugandan shilling or Zambian kwacha rather than the U.S. dollar or euro, Hua told Reuters in an interview.
The project could prove a boon to Africa which is growing on average at 5 to 6 percent a year and is eager to develop transport and power infrastructure.
Triple-A rated IFC will offer proceeds from the bond sales to companies seeking financing in the countries, Hua said.
“We will have something coming up in the market soon but it’s too premature to disclose which country,” he said.
While IFC has been involved in local bond markets in West Africa, it is now pursuing multi-year agreements with governments that would allow it to issue bonds whenever market conditions permit or when financing is needed for projects.
That would avoid the need to seek approval each time it wants to issue local currency debt, Hua said.
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