International Finance Corporation (IFC) has concluded a 1.6 billion rand facility ($98 million) with Citigroup to increase its local currency loans in South Africa, the two institutions announced on Tuesday, April 14.
This operation aims to support access to financing in rand for local businesses, in a context of currency volatility that complicates the use of foreign currency financing.
The facility notably supported an anchor investment in a results-based bond issued by FirstRand Bank, an instrument whose payments are conditioned on the achievement of measurable results.
IFC indicates that it has committed over $33 billion in local currency financing in 71 currencies over the past decade.
“Local currency financing and the development of capital markets in emerging and developing economies are key priorities,” said Jorge Familiar, Vice President and Treasurer of the World Bank Group.
The agreement follows a similar facility concluded in 2024 in Kenyan shillings between IFC and Citigroup, which the two institutions plan to expand to other emerging markets.
