Latest news with #IFC
Zawya
8 hours ago
- Business
- Zawya
IFC raises $17mln in Rwanda's second ‘Umuganda' bond
The International Finance Corporation (IFC) has raised Rwf24 billion ($17 million) through an Umuganda Bond to support the development of Rwanda's capital markets, the second such instrument in more than a decade. The eight-year amortising bond is expected to help attract more international borrowers to issue bonds in the country. The money raised through the bond, IFC's first onshore Rwanda franc-denominated bond in 11 years, will go towards a digital infrastructure project in the country to help mitigate risks associated with currency fluctuations that occur when borrowing in US dollars or another international currency.'We are excited to return to Rwanda's domestic capital markets with this bond that will support critical infrastructure and deepen domestic capital markets in the country,' said IFC's director for Eastern Africa Mary Porter Peschka in a statement on July 21.'The bond offers investors exposure to IFC's triple-A rating, while also enabling IFC to provide local currency financing to an important project that will enhance digital connectivity.'IFC issued its inaugural Rwandan franc-denominated onshore bond in 2014, when the term 'Umuganda' for domestic Rwanda franc issuances by non-resident entities was coined, marking the first placement by a non-resident issuer in Rwanda's domestic capital markets. The latest bond, listed on the Rwanda Stock Exchange, attracted diverse investors, including pension funds, insurance companies, banks and asset managers. It was 1.75 times oversubscribed and carries a coupon of 10.5 percent, about. 0.55 percent below the interpolated government yield. BK Capital and Rand Merchant Bank are the co-lead managers.'IFC's second Umuganda bond will support our work to deepen domestic capital markets in Rwanda,' said Yusuf Murangwa, Rwanda's Minister of Finance and Economic Planning IFC has been supporting capital market reforms through programmes such as the Rwanda Capital Market Development project, a joint IFC-World Bank engagement that provides advice on increasing secondary market liquidity in the government bond market, increasing the supply and issuance of non-government bonds, and developing a more diversified, professional investor base. This is aimed at increasing access to long-term local currency finance for key sectors in Rwanda. © Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (
Time of India
10 hours ago
- Business
- Time of India
Vertis Infrastructure Trust raises Rs 900 crore via SLB
Vertis Infrastructure Trust , a SEBI-registered infrastructure investment trust (InvIT) has raised Rs 900 crore through a sustainability-linked bond (SLB), marking the largest SLB issuance by an Indian InvIT to date. The proceeds will be used to support the recently awarded TOT-16, a 252-km NH-44 highway corridor in Telangana aimed at enhancing regional connectivity. Explore courses from Top Institutes in Please select course: Select a Course Category Healthcare others Project Management Digital Marketing Degree Data Science Artificial Intelligence Data Analytics Product Management CXO Leadership PGDM Others Finance Cybersecurity Public Policy Management Operations Management Design Thinking MBA MCA healthcare Data Science Technology Skills you'll gain: Financial Analysis in Healthcare Financial Management & Investing Strategic Management in Healthcare Process Design & Analysis Duration: 12 Weeks Indian School of Business Certificate Program in Healthcare Management Starts on Jun 13, 2024 Get Details International Finance Corporation (IFC) has emerged as the anchor investor in the Vertis Infrastructure Trust, which was formerly known as Highways Infrastructure Trust. Earlier this year, Cube Highways Trust (Cube InvIT) secured an investment of Rs 860 crore from the International Finance Corporation (IFC) via an SLB. With IFC as an anchor investor in the above two InvITs, it is expected that there will be enhanced foreign and domestic participation going forward in India's sustainable infrastructure and thematic bonds space. Live Events This SLB, with a 10-year fixed rate, is priced at 7.40%. A sustainability-linked bond (SLB) is a fixed income instrument (bond) where its financial or structural characteristics are tied to predefined sustainability or environmental, social and governance (ESG) objectives.
&w=3840&q=100)
Business Standard
a day ago
- Business
- Business Standard
Vertis Infrastructure Trust raises ₹900 cr via sustainability-linked bond
Vertis Infrastructure Trust, formerly known as Highways Infrastructure Trust, a Sebi-registered Infrastructure Investment Trust (InvIT), has raised Rs 900 crore through a Sustainability-Linked Bond (SLB). According to the InvIT, this is the largest SLB issuance by an Indian InvIT to date. Earlier, in February, Vertis' peer Cube Highways Trust (Cube InvIT) secured an investment of Rs 860 crore from the International Finance Corporation (IFC) via an SLB. For Vertis, IFC, as the anchor investor, invested Rs 450 crore. This SLB, with a 10-year fixed rate, is priced at 7.40 per cent. Proceeds from the issue will support the acquisition of TOT (Toll-Operate-Transfer)-16, a 252-kilometre NH-44 highway corridor in Telangana, aimed at enhancing regional connectivity. The SLB is structured with predefined sustainability performance targets that link interest rates to the achievement of ESG outcomes, the InvIT claimed. In December 2024, IFC invested Rs 630 crore in an SLB issued by NDR InvIT, a warehousing InvIT sponsored by NDR Warehousing. This SLB was the first by a warehousing InvIT in India and the first SLB issuance by any InvIT in the country. Imad Fakhoury, regional director for South Asia, IFC, added, 'South Asia's infrastructure demands are immense, and delivering resilient, inclusive solutions is urgent. By supporting performance-linked instruments, we are helping establish roads as a credible asset class for institutional investors.' Additionally, the InvIT's investment manager is Vertis Fund Advisors (formerly known as Highway Concessions One), and its sponsor is Galaxy Investments II, an entity affiliated with KKR & Co. Inc. Vertis' current portfolio has assets under management (AUM) worth around Rs 25,000 crore, comprising 27 project stretches and covering a total of 8,100 lane km across 10 Indian states.
Khaleej Times
a day ago
- Business
- Khaleej Times
Mena banks can bridge the SME finance gap through simplified, AI-driven servicing
Small and medium-sized enterprises (SMEs) play a central role in the Middle East and North African (Mena) economies, yet many remain underserved by formal financial systems, experts say. According to the International Finance Corporation (IFC), 40 per cent of formal micro, small, and medium enterprises (MSMEs) in developing countries face unmet financing needs amounting to $5.2 trillion annually. This is equivalent to 1.4 times the current level of global MSME lending. In the Mena region, the finance gap is particularly high, at 88 per cent of potential demand. In 2024, SME credit in Saudi Arabia rose by 27.6 per cent to $94 billion. In the UAE, SME lending reached $22.1 billion by mid-year. These developments reflect broader efforts to close the financing gap through technology-enabled servicing models. 'Banks often face structural challenges in addressing this gap,' said Carlos Teixeira, Head Business Dev and Strategy, Lending at Finastra. 'Legacy infrastructure, high servicing costs, increased credit risk, and fragmented data make it difficult to assess SME creditworthiness and process loans efficiently. As a result, many SMEs rely on internal funds or informal sources to finance growth and operations.' According to Finastra's 2024 Financial Services State of the Nation Survey, 87 per cent of financial institutions globally see improving access to finance as part of their responsibility. The report highlights growing adoption of cloud-native platforms, API-based architectures, and AI. Financial institutions in countries like UAE and Saudi Arabia are already taking steps to modernise their banking capabilities, which can help enable faster and more scalable lending, including to SMEs. Finastra continues to support financial institutions across Mena with modernising their SME lending capabilities, while helping to expand financial inclusion. 'Adopting a simplified servicing approach in lending is becoming a strategic priority for banks to better serve SMEs,' added Carlos Teixeira. 'By automating workflows, applying data analytics, breaking down silos and integrating digital channels, banks can reduce costs, improve credit assessments and processing times, reduce risk and deliver more tailored, responsive support.' 'Simplified and scalable servicing models also present a commercial opportunity. Banks can serve more SMEs profitably, compete more effectively with fintechs and private credit providers, and unlock new revenue streams. At the same time, expanding access to credit allows banks to contribute meaningfully to closing the finance gap and supporting economic resilience across the region,' highlighted Carlos Teixeira. To extend their reach and improve efficiency, banks in the region are also partnering with fintechs and third-party providers via digital ecosystems. These collaborations can, for example, improve risk modelling, access to alternative data sets, and processes for credit assessments. This, in turn, allows financial institutions to expand access to credit while maintaining prudent risk controls.
Express Tribune
2 days ago
- Business
- Express Tribune
Australia proposes joint ventures in mining sector
The IFC loan represents its first mining investment in Pakistan, helping to lay the foundation for further investment in mining and to support resilience in a fragile economic region. Photo (file) Australia has proposed the formation of joint ventures with Pakistani companies to tap into the potential of minerals-rich mining sector. The Australian high commissioner on Monday expressed strong interest of Australian mining companies in Pakistani regions having vast deposits of natural resources. He proposed collaboration between Australian universities, mining firms and Pakistani institutions for devising specialised training programmes to introduce modern mining techniques and services. This initiative is aimed at enhancing local expertise and supporting the development of Pakistan's mining sector. Federal Minister for Petroleum Ali Pervaiz Malik held a meeting with Australian High Commissioner Neil Hawkins at the Ministry of Petroleum, where discussions centred around expanding bilateral cooperation in energy and mining, with a particular focus on investment, technology transfer and skills development. Ali Pervaiz Malik emphasised Pakistan's commitment to enhancing energy security and welcomed Australian expertise in mining and renewable energy projects. He highlighted investment opportunities for Australian firms in Pakistan's growing energy sector. "Pakistan values Australia's advanced mining capabilities and technical knowledge. We welcome partnerships that build local capacity and attract investment in our mineral and energy sectors," Malik remarked and assured the envoy of his full support for such collaborations. The high commissioner appreciated the recent economic strides made by Islamabad. He mentioned that the improving current account surplus and profit repatriation restored the confidence of multinational companies working in Pakistan.
