By  PETER EGWUATU

Following its interest to float $50 million bonds in the country, the International Financial Corporation (IFC) in Nigeria now stands at $1.1 billion, the largest country portfolio in Africa and the eighth-largest globally.

Meanwhile, the Investment Supervision Department of Nigeria’s National Pension Commission (PENCOM) has endorsed the first Naira bond to be issued by IFC, a member of the World Bank Group.

Following roadshows in Abuja and Lagos, IFC plans to issue a $50 million, five-year local-currency bond—equivalent to approximately 8 billion (eight billion) Naira—to support the country’s domestic capital markets and increase access to local-currency finance in Nigeria.

According to a statement made available to Vanguard, Ehimeme Ohioma, Head of the National Pension Commission’s Investment Supervision Department, endorsed the bond in his opening remarks at the roadshow for investors in Abuja, where he was representing the Director General of PENCOM. “It is important to encourage issuances from international triple-A rated corporates such as IFC, which offer diversification and fair returns to pension funds and other institutional investors,” he said.

The IFC Naija bond will be IFC’s first naira-denominated bond. It will also be the first placement by a nonresident issuer in the country’s domestic capital markets.

The IFC Naija bond is targeted at investors such as pension funds, insurers, asset managers, and banks, who seek to diversify their portfolio while investing in high-quality assets. IFC bonds are rated international triple-A by Moody’s Investors Service and Standard & Poor’s. Proceeds from the bond will be used to support IFC’s private sector development program.

IFC issues bonds as part of its regular program of raising funds for private sector development, and to support the development of domestic capital markets. In many cases IFC is the first, or among the first, nonresident issuers. As of June 30, 2012, IFC had outstanding bond issuances totaling $45 billion in 11 currencies. Chapel Hill Advisory Partners Limited and Standard Chartered Bank are lead managers of the transaction

In May 2012, IFC launched its Pan-African Domestic Medium-Term Note Programme, which focuses on Botswana, Ghana, Kenya, Namibia, Rwanda, South Africa, Uganda, and Zambia. IFC has also obtained approvals to issue local-currency bonds in Kenya. Previously, IFC worked with Ghana, Zambia, and eight members of the West African Monetary Union to establish local-currency bond programs. In 2006 and 2009, IFC issued bonds denominated in CFA francs.