By Chris Lui, JCN Network -

Tokyo, Sept 2, 2010 (JCN) - IFC, a member of the World Bank Group, and Daiwa Securities Group today announced plans to issue a bond this month that will expand access to finance for poor and low-income entrepreneurs in developing countries.

The bond is expected to raise up to USD 323million, a comparable amount to IFC’s microfinance program in recent years. IFC will invest an amount at least equal to the bond proceeds to support microfinance activities.

The issue will be arranged by Daiwa Securities Capital Markets Co. Ltd., the wholesale securities firm under Daiwa Securities Group, and distributed by Daiwa Securities Co. Ltd. to Japanese retail and institutional investors.

Microfinance is a powerful instrument for reducing poverty. It enables poor people to build assets, increase incomes, and reduce their vulnerability to economic stress.

IFC focuses on commercially viable microfinance institutions that can attract private capital needed to scale up and respond to unmet demand.

Japanese investors are helping to meet the need as well through their investments in the microfinance bond, indirectly contributing to poverty reduction.

This will be IFC’s second microfinance bond. The first issue in November 2009 raised approximately 25 billion Japanese yen.

The bond is an example of Daiwa’s Impact Investment initiative. Under this initiative, Daiwa Securities Group actively pursues its commitment to social responsibility by seeking out investments that achieve social impact while attaining appropriate financial returns.