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In this regard, IIB is involved in the provision of products in Capital Markets. IIB aids the securitization of future capital flows:
- IIB SPVs can issue the bonds if needed(Debt capital Markets
- IIB SPVs can sell its share if required (Equity Capital Markets)
IIB Capital Markets (ICM) supports our firm, portfolio companies, and partners by providing tailored capital markets advice and developing and implementing both traditional and nontraditional capital solutions for investments. We leverage the intellectual capital, industry expertise, and our global network to deliver the full capabilities of our firm.
IIB Capital Markets is also an important resource to our private equity business and assists our portfolio companies with financing and capital structure improvement.
We provide our capital markets with differentiated access to capital through our distribution platform. We focus on the most active IIB portfolio only. Close interaction and coordination with IIB SPVs providing IIB with enhanced market intelligence and advice, structuring, and execution.
IIB Capital Markets has a platform of over 70 investment professionals globally across debt and equity financing. We provide to only IIB SPVs critical market analysis, group advises on capital strategy, equity transactions focused , and debt transactions focused on leveraged loans, bonds and private placements, strategic guidance and precise execution of capital solutions for generating growth, driving value, maximizing resources and mitigating risk. That means we think beyond the transaction at hand—to consider the future, so we can be a trusted resource for years to come. We bring together an integrated set of multi-competency capabilities along with a digitally enabled approach to guide SPVs mergers and debt offerings.
Our Capital Markets Integrated Solution brings a cross-functional holistic view to capital raising, helping our clients create value by identifying new ways to access capital or focus investment where it matters most. We also bring industry-leading project management to help address today’s increasing complexity of capital markets transactions.
1.IIB Vision in Capital Markets
IIB-DG strives to be a leading private sector infrastructure company globally with a strong balance sheet and tremendous access to the capital markets raising liquidity in the form of both debt and equity without any dependence on third-party financial support. IIB’s capabilities are unique in being an advisor, project owner, manager, financier, and strategic partner.
IIB has established a highly reputable track record in meeting its mission statement backed by successful projects sponsored by IIB that allow it to have significant financial flexibilities. IIB is involved in providing thought leadership on various developing countries’ economic and developmental issues through participation in white papers and global forums where such topics are discussed and contemplated.
IIB is sought out by multilateral agencies and global leaders for its perspectives on policies and challenging matters concerning developmental economics. From a financial perspective, the issuance of bonds, its own financial instruments, and bonds whereby would be treated analogously to the highest-grade bonds. Such bonds are traded, perpetuating cash flows that enhance IIB `s financial capabilities further without any dependency from third parties. This allows IIB to provide support in countries where financing is least available, further cementing its global presence in the project’s financing.
Central banks are willing to take IIB bonds and provide immediate liquidity to IIB issuances which provide immediate availability of funds to infrastructure funds that IIB would choose to sponsor. IIB is a leading multilateral agency. Similarly, IIB executives are given the same stature and influence as sovereign leaders concerning developmental and economic matters in the world. The IIB performs its functions and carries out its activities following the provisions of its Statute. The task of the IIB is “to contribute, by having recourse to the capital market and utilizing its own resources, to the balanced and steady development of the global market in the interest of the IIB-DG.
2. Role of IIB in the capital Markets
The IIB plays a significant role in the international capital markets through a broad range of activities. Our Treasury department is involved in:
- funding
- management of the IIB’s capital, retained earnings and borrowed funds
- development of local capital markets and the provision of local currency funding
- structuring and advisory for IIB projects
1. About the Treasury
The Treasury team finances the IIB’s projects, conservatively invests the IIB’s capital and liquidity, actively manages interest rate and FX risk, and provides structuring expertise for the IIB’s loan and equity projects.
The IIB Treasury is organized into four main business areas combined with a Treasury-wide quantative analytical support unit and market data administrator.
The Four main units are:
1. Portfolio Management – Credit
The Portfolio Management-Credit desk manages the long-term credit portfolio of the Bank. The portfolio is managed with the dual objective of protecting the IIB’s capital and optimizing returns on the portfolio within defined market, liquidity and credit risk parameters, as well as with due consideration of sustainability risks. In taking exposures, the IIB is guided by the principles of conservative and responsible investment, expressed through the credit quality and, increasingly, through the assets invested.
2. Hard Currency Balance Sheet Management
The Hard Currency Balance Sheet Management (HCBSM) group has functional responsibility for the management of all financial hard currency risks in the IIB’s balance sheet. It is organized along three core activities:
- Managing the interest rate and currency composition of the IIB’s balance sheet;
- Investing in a highly liquid pool of government securities that form part of the liquidity pool of the IIB; and
- Raising and managing short dated liquidity
3. Local Currency Balance Sheet Management
The Local Currency Balance Sheet Management (LCBSM) Group has functional responsibility for the management of financial risks associated with the Bank’s local currency activities. As such they manage IIB`s local currency interest-rate, FX and liquidity risks. It is organized along the following four geographical areas:
4. Bonds Issued
IIB is an established debt issuer in the capital markets. The IIB continuously develops innovative products and has a broad investor base. This track record enables the IIB to access the markets at any time and in the borrowing, volumes needed to support the IIB’s development targets. The IIB will issue billion in over 40 currencies via its over 250 SPV`s assets worldwide.
2. Local currency issuance
Our local currency issues help to further capital markets development in IIB’s countries of operations.
3. Capital Markets Development
The IIB endeavours to develop new instruments for the purpose of raising funds and deepening the capital markets. It also supports the capital markets through direct equity participation or financing of organizations that provide infrastructure for capital markets or through sponsorship of programmes and activities that help in development and deepening of the capital markets.
