World Bank Group’s IFC and Citi Sign Borrowing Facility to Expand Local Currency Financing in South Africa

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 borrowing facility that will expand 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 has supported IFC’s anchor investment into the Cape Water outcome-based bond issued by South Africa’s FirstRand Bank – the first outcome bond issued by a commercial bank globally.

“Local currency financing and capital markets development in emerging and developing markets are critical priorities for the World Bank Group.” said Jorge Familiar, Vice President and World Bank Group Treasurer. “This facility is another example of what our partnerships with the private sector can deliver — from outcome bonds to local currency solutions — in support of long-term finance for job creation.”

This facility builds on a similar one established in Kenyan Shilling (KES) that IFC and Citi signed in 2024.The two institutions plan to continue replicating the facility across 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 throughout 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 ensuring access to local currency financing for development priorities — and by supporting new instruments in local capital markets, the World Bank Group contributes to the further deepening of those markets. Over the last decade, IFC has committed more than $33 billion in local currency financing across 71 local currencies.

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