IFC
Financial Institutions Group (FIG)

Capital Markets
Industry Context
Well-functioning capital markets mobilize supplies
of private capital by channeling finance from savers/
issuers (institutional, retail, asset managers) toborrowers (firms, governments, and others). Welldeveloped capital markets provide a competitive spur tobank finance and improve the quality and efficiency ofresource allocation within an economy by directing capital
to its most productive uses. They also finance activities
often perceived as too risky for bank financing, and often at

IFC Strategy and Portfolio
IFC builds the ecosystem for private investment
in Emerging Markets and Developing Economies,
through advisory services and capital market
reforms, thereby improving access andopportunities. Forging partnerships with diverse
institutional investors, IFC demonstrates theinvestment case and brings in co-investors across ourportfolio. IFC’s expertise in structuring innovative

longer tenors.

Capital Markets investment products supports new

The potential for private capital to drive development

EMDE investments, enabling social safety nets,

impact is immense, with global banks, institutionalinvestors, and asset managers holding approximately$400 trillion in assets under management. Just a 1%
annual reallocation could bridge the SDG financing gap. Yet

avenues to channel private capital into productive
financial stability, and resilience.
Reflecting different stages of countries’ CapitalMarkets development, FIG Capital Markets work is

significant barriers remain to unlocking this capital at scale,guided by three strategic pillars:from limited benchmarks and market data to challenging• Developing local Capital Markets by attracting aregulatory environments.

wider range of issuers, diversifying the investor
base, and building robust market infrastructure.
• Deepening and broadening Capital Markets

FIG’s Capital Markets Volume

and fostering innovation by supporting and/(as of end-June 2024)

or introducing new asset classes and products,$9.2billion

leveraging innovative Capital Markets solutions,

LTF Commitments (Historical)
FIG Capital Markets Operations(as of end-June 2024)$22.9billion

and prompting better information, transparency
and standard-setting.
• Increasing access to global capital by building
market capacity to mobilize global investment
flows and developing and leveraging co-investment
and de-risking instruments and platforms.

Project Examples
BNP PARIBAS BANK POLSKA S.A.,
In March 2024, IFC invested in a Synthetic Significant
Risk Transfer (SRT) in favor of BNP Paribas Bank
Polska S.A., the Polish subsidiary of global banking
group BNP Paribas S.A. IFC provided a PLN218 million
guarantee (US$55 million-equivalent) on a PLN2.18
billion reference portfolio (US$548million-equivalent)of corporate-loan related credit exposures originatedand retained by the Bank on its balance sheet. It wasthe second SRT with the Group. The SRT in Poland
supports the growth of the Bank’s franchise insustainable financing for renewable energy, water

BANCO PICHINCHA, ECUADOR
The project entails 5- year financing to Banco Pichincha
Ecuador, through a $50 million subscription of senior
gender bonds in a total $100 million bond issuance inthe local market. The proceeds of the issuance will be
used to provide access to finance for women-owned
small and medium enterprises (WSMEs) in Ecuador.
The project is the first gender bond, aligned withinternational Social Bond Principles, to be issued by
Banco Pichincha and the first of its kind to be issued inEcuador.

efficiency and clean transportation projects in Poland,
by using released regulatory capital that the Bankotherwise would have been required to hold against
the reference portfolio assets. IFC is proud to beplaying a leading role in the introduction of SRTs tobanks in emerging markets that can increase access tosustainable finance at a time when massive
investments are needed to accelerate the green
transition. The project also represents IFC’s first SRTtransaction under the Simple, Transparent, andStandardized (STS) designation which helps eliminate

T. ROWE PRICE BLUE BOND FUND
IFC and T. Rowe Price launched a pioneering blue bondstrategy to increase access to finance for blue projects
in emerging markets and help improve market
standards. The fund will mobilize international capitalfrom eligible investors to support blue-labeledinvestments in emerging markets through bonds
issued by financial institutions and real sector
companies.

market frictions by making synthetic securitizations and the mechanics associated with them comparable and replicable. It increases transparency

JOINT CAPITAL MARKETS PROGRAM (J-CAP)

and reduces uncertainty for issuers, investors, andLocal capital market development is a key area ofregulators alike.

collaboration between IFC and the World Bank. This
includes the Joint Capital Markets Program (J-CAP),
which offers country-tailored advisory and investments

CREDICORP CAPITAL, COLOMBIA
Building on successful Upstream work in Colombia,
IFC invested $50 million equivalent in FCP Credicorp
Capital Deuda Privada I, an untranched debt fundestablished in Colombia by Credicorp Capital ColombiaS.A., an existing IFC partner and leading asset manager
in the country. IFC’s investment supported capital
market deepening by establishing an alternative
investment vehicle for institutional investors tochannel longer-term local currency private sector
financing to Colombia’s real economy. IFC’s investment
is contributing to setting market standards, building
local capacity, and generating confidence among

to promote liquid, diverse, and well-regulated local
capital markets that can be leveraged to financepriority sectors. Launched in 2018, J-CAP currentlyworks in 18 countries and has enabled over $2.6 billionof IFC investments and $656 million in additional
private investment for development. J-CAP linked
advisory and knowledge-sharing have catalyzed an
estimated $14 billion in private investment in sectors
ranging from housing to SMEs, as well as supporting
investments by local pension funds. J-CAP is madepossible by support from the governments of
Switzerland, Germany, Luxembourg, Japan, Australia,and Norway.

institutional investors in this new asset class tofacilitate and enhance access to alternative funding
sources for real sector entities, including SMEs.

International Finance Corporation 2121 Pennsylvania Avenue NW, Washington, DC 20433
www.ifc.org | www.ifc.org/CapitalMarkets