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IFC and JBIC Extend Partnership Investing in Systemically Important Banks in Developing Countries


In Tokyo:
Elizabeth Price
Phone: +81 (0) 80-46 298 528
E-mail: Eprice@ifc.org

In Washington, D.C.
Alexandra Klopfer
Phone: +1 202 473-4645
E-mail: Aklopfer@ifc.org

Tokyo/Washington, D.C., October 12, 2012— IFC and Japan Bank for International Cooperation (JBIC) will extend the investment period of the $3 billion IFC Capitalization Fund by one year, based on its successful track record and continuing investment opportunities.

The fund is managed by IFC Asset Management Company, a wholly owned subsidiary of IFC. It was designed in the wake of the global financial crisis to invest in Tier One and Tier Two capital in emerging market commercial banks that are systemically important for their local economies. Since its inception in 2009, the fund has made approximately $1.6 billion in investment commitments in 13 banks across all regions of the world.

“The IFC Capitalization Fund is a landmark achievement for IFC,” said Jin-Yong Cai, IFC EVP and CEO and Chairman of IFC Asset Management Company. “It was the first fund under IFC Asset Management Company, and a critical initial step in creating a new platform for managing and investing capital in emerging markets. It’s a testament to the fund’s investment success and the strength of our partnership that we are extending the fund's investment period.”

Hiroshi Watanabe, CEO, Executive Managing Director of JBIC, said "We are pleased with the expanding partnership with IFC and with seeing the investments made through the IFC Capitalization Fund bear fruit in addressing the impact of the global financial disruption. The extension of the investment period will enable the fund to further meet the demands in the emerging market banking sector.”

The IFC Capitalization Fund consists of a $1.275 billion equity fund and a $1.725 billion subordinated debt fund. It is jointly supported by a $2 billion investment from JBIC and a $1 billion investment from IFC. Its investment period is being extended from February 2013 to February 2014.

Gavin E.R. Wilson, CEO of IFC Asset Management Company, added: "We thank JBIC for their continued commitment, especially at a time when the financial crisis continues to have an impact across the global banking sector. JBIC was our first partner, and we are very pleased to be extending our cooperation on this fund.”



About IFC Asset Management Company
IFC Asset Management Company LLC, a wholly-owned subsidiary of IFC, invests third-party capital in private companies in emerging markets, enabling outside investors to benefit from IFC’s expertise in achieving strong equity returns as well as positive development impact in the countries in which it invests. It manages $4.5 billion of capital across four investment funds.

About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit www.ifc.org.

About JBIC
Japan Bank for International Cooperation (JBIC) is a policy-based financial institution wholly owned by the Japanese government. JBIC has the purpose of contributing to the sound development of Japan and the international economy and society, by taking responsibility for the financial function to promote the overseas development and securing of resources which are important for Japan, to maintain and improve the international competitiveness of Japanese industries and to promote the overseas business having the purpose of preserving the global environment, while having the objective of supplementing the financial transactions implemented by ordinary financial institutions. JBIC also provides the financial services that are necessary to prevent disruptions to international financial order or to take appropriate measures with respect to damages caused by such disruption. For more information, visit www.jbic.go.jp/en.