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WASHINGTON, Nov 7 (Reuters) - The International Finance Corporation said it gained approval from the Russian government to issue its first rouble-denominated bonds, in an amount up to $730 million, to bolster the country's domestic capital markets.
The IFC, the World Bank's private-sector lending arm, said it plans to issue up to 13 billion roubles ($412 million) in five-year bullet bonds in the near-term, though the exact timing and amount would depend on market conditions.
IFC regularly issues bonds -- which are rated triple-A by Moody's and Standard & Poor's -- to raise funds for businesses that contribute to development. The issuance can also help strengthen a country's capital markets and encourage greater investor participation.
"Well-functioning local capital markets are the foundation for private sector development and provide greater resilience against capital flow shocks," Tomasz Telma, the IFC's director for Europe and Central Asia, said in a statement.