WB, IFC assisting on corporate bonds

THE World Bank Group and the International Finance Corp. are helping governments in emerging markets to simplify its regulations for corporate bonds, the IFC said in a statement on Monday.

According to the IFC, the changes were designed to increase the volume of non-government bond transactions as well as to improve the diversification and performance of institutional investors’ portfolios.

“IFC and World Bank’s Efficient Securities Markets Institutional Development program, known as ESMID, is working with emerging market countries to address barriers to the development of local and regional non-government bond markets,” the institution said.

It added that its goal is to make it easier for local companies and nongovernment institutions to issue bonds to investors, including local pension funds and insurance companies.

The IFC also said that it also hosted a workshop for market participants to learn about the challenges and opportunities of primary markets.

The institution noted that based on a new report from them and the World Bank, increasing the supply of corporate bonds requires introducing flexibility into the primary market framework and providing a range of issuance options, such as hybrid regimes.

“The study also stresses that there is no one-size-fits-all model: regulations need to be tailored to each market, taking into consideration a country’s economic and regulatory context” IFC added.

IFC is the largest global development institution focused exclusively on the private sector that helps in developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets.

It also helps its clients create jobs, strengthen environmental performance and contribute to their local communities.