The World Bank Group, through its private sector arm the International Finance Corporation (IFC), and Citi have signed a new 1.6 billion South African Rand lending facility that will expand the IFC's ability to provide local currency financing in South Africa.
This facility adds to the World Bank Group's suite of local currency financing instruments, strengthening its capacity to support private sector development. The facility supported IFC's anchor investment in a Cape Water results-based bond issued by South Africa's FirstRand Bank – the first results bond issued by a commercial bank globally.
“Local currency financing and the development of capital markets in emerging and developing markets are important priorities for the World Bank Group.” said George Familiar, Vice President and Treasurer of the World Bank Group. “This facility is another example of what our partnership with the private sector can deliver – from outcome bonds to local currency solutions – in support of long-term finance for job creation.”
The facility builds on a similar facility established in Kenyan Shilling (KES) that IFC and Citi signed in 2024. Both institutions plan to continue replicating this feature in additional countries.
“This facility deepens our partnership with the World Bank Group,” said Stephanie von Friedeburg, global head of Citi's public sector group. “Following our Kenyan shilling transaction, this first South African rand facility reflects a model that can be replicated in emerging markets. It adds to the toolkit for development finance institutions and supports local currency financing where it is needed most.”
Currency volatility remains one of the most important priorities for private sector development in emerging markets. Deep and liquid capital markets are essential to ensure access to local currency financing for development priorities – and by supporting new instruments in local capital markets, the World Bank Group contributes to deepening those markets. Over the past decade, IFC has committed more than $33 billion in local currency financing in 71 local currencies.
Distributed by APO Group on behalf of the World Bank Group.