Emerging Markets: Assessment of Hard-Currency Bond Market An Analysis of Emerging-Market Hard-Currency Bonds Issued by Financial Institutions ACKNOWLEDGEMENTS This report was supported by the Green Bond Technical Assistance Program (GB-TAP), a multi-donor program managed and administered by the IFC, to promote green bond issuance from emerging-market financial institutions. The GB-TAP is funded by the Swiss State Secretariat for Economic Affairs (SECO), the Swedish International Development Cooperation Agency (SIDA), and the Ministry of Finance of Luxembourg. This publication was prepared by International Finance Corporation, led by the leadership of Jean-Marie Masse with a collective work performed by Haruko Koide, Yang Li (analysis on Hard Currency Bonds), Jessica Anne Stallings (analysis on Green Bond), Piotr A. Mazurkiewicz (ESG), and Lukas Paul Jaehn. Special appreciation to IFC internal reviewers (Paolo Martelli, Denise Odaro, Martin Valcin) and IFC Communication Team (Thomas Michael Kerr, Egidio Germanetti, Henry Pulizzi, Rob Wright). ABOUT IFC IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities where they are needed most. In fiscal year 2019, we delivered more than $19 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org COPYRIGHT AND DISCLAIMER NOTICE © International Finance Corporation 2020. All rights reserved. 2121 Pennsylvania Avenue, N.W. Washington, D.C. 20433 Internet: www.ifc.org The material in this work is copyrighted. 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All names, logos and trademarks are the property of IFC and you may not use any of such materials for any purpose without the express written consent of IFC. Additionally, “International Finance Corporation” and “IFC” are registered trademarks of IFC and are protected under international law. CONTENTS FOREWORD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iv DATA SOURCES AND METHODOLOGY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vi DEFINITIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1. An Overview of Global and Emerging Bond Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Global and Emerging-Market Gross Domestic Product (GDP). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 GDP Growth and Bank Assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Global Bond Market. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 EM Bond Market. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 2. Hard-Currency Bonds Issued by Emerging-Market Financial Institutions . . . . . . . . . . . 9 Summary of Key Findings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 EM FI Bond Issuance Trend . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Analysis of Large Bond Issuers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Analysis by Financial Institution Type. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Bond Maturity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Bond Issue Size. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 EM Region and Country Deep Dive. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 3. Green Bond Markets: Linkage to Hard-Currency Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . 27 4. Technical Assistance Program: to Stimulate the Supply of Green Bonds . . . . . . . . . . . 30 5. An Effective ESG Management: Critical Element in Green Bond Issuance. . . . . . . . . . . 33 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Appendix A: EM Country Credit Ratings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Appendix B: EM Hard-Currency Bond Outstanding Value Ranked by Country. . . . . . . . . . . . . . . . 38 Appendix C: Hard-Currency Bond Issuance (2009–2019H1) and Outstanding Value by EM Regions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Appendix D: List of the 398 EM Banks Issuing Hard-Currency Bonds (2009–2019H1) by EM Countries and Ranked Based on Total Assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 Appendix E: List of All 804 EM FIs Issuing Hard-Currency Bonds (2009–2019H1) by Alphabetical Order . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 i ii List of Figures Figure I.1. Monthly Issuance of EM Corporate Bonds Denominated in U.S. Dollars (January 2018–April 2020)........... 2 Figure 1.1. Global Nominal GDP................................................................................................................................................................... 3 Figure 1.2. Global Real GDP Growth...........................................................................................................................................................4 Figure 1.3. Growth of China’s Banking Sector, 2008–2018................................................................................................................4 Figure 1.4. Bank Assets as Percentage of GDP Ranked by EM Countries, 2016.......................................................................... 5 Figure 1.5. Global Bond Market Size...........................................................................................................................................................6 Figure 1.6. Sector Breakdown of EM Corporate Hard-Currency Bond Market.......................................................................... 7 Figure 2.1. History of Hard-Currency Bond Issuance by EM FIs, 2009–2019H1..........................................................................9 Figure 2.2. EM FI Hard-Currency Bond Outstanding Value, as of June 30, 2019.......................................................................10 Figure 2.3. Number of EM FIs That Issued Bonds at or above US$500 Million (Issue Size)................................................... 11 Figure 2.4. Number of EM FIs That Issued Bonds at or above US$1 Billion (Issue Size)........................................................... 11 Figure 2.5. Number of FIs Issued Hard-currency Bonds (Any Size)................................................................................................ 11 Figure 2.6. Breakdown of Hard-Currency Bond Issuance by All EM FIs.......................................................................................12 Figure 2.7. Maturity Profile of Outstanding Hard-Currency Bonds Issued by EM FIs, as of June 30, 2019.......................13 Figure 2.8. Outstanding Value of EM Hard-Currency Bonds Issued by Banks by Country, as of June 30, 2019............ 14 Figure 2.9. Number of EM Banks and Cumulative Hard-Currency Bond Issuance, 2009–2019H1......................................15 Figure 2.10. Issue Size Breakdown for Hard-Currency Bond Issued by EM FIs........................................................................... 16 Figure 2.11. Number of Bonds at or above US$300 Million (Issue Size) per year....................................................................... 16 Figure 2.12. Regional Breakdown of Hard-Currency Bonds Issued by EM FIs..............................................................................17 Figure 2.13. East Asia and Pacific Region FI Hard-Currency Bond Outstanding Value, as of June 30, 2019..................... 18 Figure 2.14. Latin America and the Caribbean Region FI Hard-Currency Bond Outstanding Value, as of June 30, 2019..................................................................................................................................................................... 19 Figure 2.15. Europe and Central Asia Region FI Hard-Currency Bond Outstanding Value, as of June 30, 2019............. 20 Figure 2.16. Middle East and North Africa Region FI Hard-Currency Bond Outstanding Value, as of June 30, 2019......................................................................................................................................................................21 Figure 2.17. South Asia Region FI Hard-Currency Bond Outstanding Value, as of June 30, 2019......................................... 22 Figure 2.18. Sub-Saharan Africa Region FI Hard-Currency Bond Outstanding Value, as of June 30, 2019....................... 23 Figure 2.19. EM FI Hard-Currency Bond Outstanding Value by Country, as of June 30, 2019...............................................24 Figure 2.20. Number of FIs and Cumulative Hard-Currency Bond Issuance by Country, 2009–2019H1........................... 25 Figure 3.1. Emerging-Market Global Green Bonds: Annual Issuance by Currency.................................................................. 27 Figure 3.2. Emerging-Market Green Bonds: Annual Issuance by Sector..................................................................................... 27 Figure 3.3. Global Green Bonds: Annual Issuance by Segment.......................................................................................................28 Figure 3.4. Global Green Bonds: Market Size (Outstanding value)................................................................................................28 Figure 3.5. Emerging-Market Green Bond Issuance, 2012-2019.....................................................................................................29 Figure 4.1. Green Bond Technical Assistance Program..................................................................................................................... 30 Figure 4.2. GB-TAP Supports Green Bond Supply.................................................................................................................................31 List of Boxes Box 3.1. Definition of Green, Social and Sustainable Bonds........................................................................................................29 Box 5.1. What Is ESG Management and Why Is It So Important?............................................................................................. 33 iii Foreword Jean-Marie Masse Access to critical debt funding will facilitate and accelerate these developments to reduce greenhouse gas Chief Investment Officer, emissions and achieve long-term impact. Financial Institutions Group, International Finance Within emerging-market corporate bond issuers, financial Corporation institutions play a key role in developing a sustainable and climate-friendly environment and are among the most geographically spread, numerous, sophisticated, and recurrent issuers. Financial institutions—in particular regulated systemic banks—operate fairly similar and As we publish this report, governments across the world homogeneous business models across emerging- are implementing unprecedented measures to fight one market countries, facilitating data collection, analysis, of the deadliest pandemics since the Spanish Flu. and comparisons. This study finds that 60 emerging- Emerging-market economies have far less room for fiscal market countries host 804 financial institutions, including and monetary maneuvering and, as shown by early 398 banks, that are issuing hard-currency bonds with a indicators, will be disproportionately hit by the COVID-19 total of US$650 billion in bonds outstanding as of June crisis. Today, bond issuers and investors face the challenge 2019. About 52 percent of that amount is issued by of overcoming current market turbulence.  financial institutions based in China. These financial institutions represent about 31 percent of outstanding In this context, financing the commitments made under emerging-market hard-currency corporate bonds and the Paris Agreement and the 2030 Agenda for Sustainable represent the largest industry segment. Development requires global investment on an unprecedented scale. IFC estimates that untapped This study’s unique set of data on emerging-market climate investment opportunities total US$29.4 trillion in hard-currency bonds and bond issuers is meant to be emerging markets. The steps these rapidly growing used by researchers, academics, financial institutions, nations take to respond to their development needs will investors, fund managers, and other stakeholders to guide directly affect the world’s capacity to achieve the their analysis and strategic decision-making. This study promises of the Paris Agreement. What can dramatically aims to contribute to improving the capital flows to help these countries is that they can now invest in new, emerging-market economies through financial climate-resilient infrastructure and offset higher up-front institutions and capital markets solutions. costs through both efficiency gains and fuel savings. iv Raymund Furrer Carin Jämtin Arsène Jacoby Head of Economic General Director, the Alternate Governor, Cooperation and Swedish International Ministry of Finance of Development, Development Luxembourg Swiss State Secretariat Cooperation Agency for Economic Affairs Meeting the ambitions of the Paris Agreement as well as Economic Co-operation and Development (OECD) the Sustainable Development Goals (SDG) requires public countries (that is, most issuances so far) and emerging and private investments on an unprecedented scale. The markets (that is, those with the largest climate mitigation mobilization of private capital is thus crucial for potential). The EGO Fund creates demand for green responding to these investment needs. In emerging bonds, while GB-TAP stimulates green bond supply in markets, contrary to markets in developed countries, emerging markets, with appropriate quality and banks are the main provider of debt finance and are independent verification mechanisms. hence are essential in unlocking the potential to finance Environmental, Social and Governance (ESG) and SDG- We are delighted that this study has been made possible related investments. The issuance of emerging-market with our support. We hope it will contribute to a better bonds is an opportunity to access needed financing from understanding among investors, emerging-market institutional investors. financial institution bond issuers, and other public and private sector institutions of the investment opportunities Given the potential to contribute to important offered by emerging-market bond markets. As donors, we development impacts, development agencies have an also aim to generate public goods that provide market increased interest in supporting the growth of green bond players with the necessary tools, knowledge, and research markets. This includes support of IFC’s GB-TAP, leveraging to further promote the development of financial markets. the development impact of the Amundi Planet Emerging This publication is an example of one such public good Green One Fund (EGO Fund). The objective is to bridge delivered by GB-TAP. the disparity of green bond issuances in Organisation for v Data Sources and Methodology This report, Emerging Markets: Assessment of Hard-Currency This study uses three data sources for its analyses: Bond Market, studies hard-currency bonds—defined narrowly as bonds denominated in either U.S. dollars or • Bond market size (outstanding value) by developed euros—issued by emerging-market (EM) financial markets and emerging markets—the Debt Securities institutions (FIs) over a period of 10.5 years (from 2009 Statistics from the Bank of International Settlements through the first half of 2019). (BIS) Using the list of the World Bank Group members that are • Breakdown of EM bonds by sovereign vs. corporate, defined as developing countries, this study has found 60 and by local vs. hard-currency – JP Morgan CEMBI EM countries hosting a total of 804 FIs with a history of Index series monthly JP Morgan CEMBI Monitors issuing at least one hard-currency bond during the outlined period. Hard-currency bond issuance data are • Sector breakdown of EM hard-currency bonds—JP sourced from Bloomberg. Morgan CEMBI Broad Diversified Index Debt instruments with a maturity of less than one year The JP Morgan CEMBI Broad Diversified Index is the are defined as money market instruments and are corporate EM bond index tracking U.S. dollar- therefore excluded from this study. Bond screening denominated debt issued by EM corporates. To qualify for criteria for FIs are detailed in the “Definitions” section. the CEMBI Index series, a bond issued by an EM corporation must have a minimum issue size of US$300 million with a minimum maturity of five years (upon entry Bloomberg Bond Data Selection and Filtering Criteria into the index) and no less than 13 months to maturity Debt instruments Bonds (before exit).1 Sector Corporate Bond type Bullet and option-embedded (callable, putable, and convertible) bonds, excluding perpetual bonds Issue date January 1, 2009, to June 30, 2019 Maturity Equal to or larger than one year Currency US dollar, euro Industry class Banks, diversified banks, government develop- ment banks, consumer finance, commercial finance, financial services, funds and trusts, and life insurance 1 Source: JP Morgan Corporate Emerging Market Index (CEMBI) Series Rules and Methodology, December 2015. vi Definitions Emerging-market countries are defined as developing characteristics from either banks or nonbank financial countries from the combined list of JP Morgan CEMBI institutions (NBFIs). Government development banks and Index and the World Bank Group members. This study diversified b anks a re included u nder “Banks.” “Financial examines all qualified developing countries and has found services” include non-deposit-taking institutions such as 60 that host FIs with a history of issuing hard-currency asset management companies, investment funds, bonds between 2009 and the first half of 2019. securities companies, and financial holding companies. Those 60 EM countries are Argentina, Armenia, Financial institutions (FIs) included in this study are as Azerbaijan, Bahrain, Belarus, Bolivia, Brazil, Bulgaria, Chile, follows: China (including Hong Kong SAR; Macao SAR; and Taiwan, China), Colombia, Costa Rica, Croatia, the Czech • Banks: banks, diversified banks, and national Republic, the Dominican Republic, Ecuador, the Arab government development banks Republic of Egypt, El Salvador, Estonia, Georgia, Ghana, Guatemala, Honduras, Hungary, India, Indonesia, Jamaica, • NBFIs: commercial finance, consumer finance, financial Jordan, Kazakhstan, Lebanon, Lithuania, Malaysia, services, funds and trusts, and life insurance Mauritius, Mexico, Mongolia, Montenegro, Morocco, Nicaragua, Nigeria, Oman, Panama, Paraguay, Peru, the Please refer to Appendix D for a full list of the 398 banks Philippines, Poland, Romania, the Russian Federation, included in this study, ranked by total assets in each Rwanda, Saudi Arabia, South Africa, Sri Lanka, Thailand, country, and refer to Appendix E for a full list of the 804 Togo, Trinidad and Tobago, Turkey, Ukraine, the United FIs included in this study. Arab Emirates, Uruguay, Vietnam, and Zimbabwe. Hard-currency bonds issued by EM FIs included in this In this study, EM ex-China includes all of the study are defined narrowly as bonds denomi- nated in aforementioned countries except China. either U.S. dollars or euros. Please note that EM hard- currency bonds tracked by the JP Morgan CEMBI Broad Please refer to Appendix A for detailed credit rating Diversified Index include only bonds denominated in U.S. information for each country included in this study. Please dollars. visit https://www.worldbank.org/en/about/leadership/ members for a full list of member countries of the World Abbreviation of IFC’s regions are as follows: Bank Group. EAP East Asia and Pacific ECA Europe and Central Asia Financial institutions included in this study are defined by LAC Latin America and the Caribbean Bloomberg’s industry category “Financial.” This study MENA Middle East and North Africa removed real estate and property and casualty insurance SA South Asia companies because those companies exhibit different SSA Sub-Saharan Africa vii viii Introduction THE CHALLENGE in assessing an EM FI’s readiness to issue green bonds. This study was used to project growth potential by There is a lack of information on emerging-market (EM) building a bridge between EM FI hard-currency bonds financial institutions (FIs) that are issuing hard-currency and green bonds. bonds because this market segment is often folded into the broader EM corporate bond category. However, EM In addition, this report aims to disseminate information FIs play a critical role in EMs’ financial systems as both a and increase market awareness of investment main financing source for the real economy and key opportunities offered by hard-currency bonds issued by participants in capital markets. Regulated FIs – in EM FIs. This study’s unique set of data is centered on particular, systemic banks – are dominant suppliers of mapping EM FIs that have a consistent history of issuing debt finance to the economy and therefore wield hard-currency bonds. The study is meant to be a unique significant influence in shaping the growth of the research piece guiding multiple interested stakeholders economy and the development of local capital markets. and hence contributing to an increase of investment flows into EM countries through capital market solutions. This report is published against the backdrop of prolonged low interest rates in developed markets (DM). The decade IFC is sharing this report with the public, hoping to serve after the Great Financial Crisis of 2008 saw a persistent the broader communities, who may use it in the period of low interest rates in DM countries and a following ways: significant amount of negative-yielding debt across the globe, peaking at US$16.8 trillion as of August 2019. In • Investment communities (including asset comparison, EM corporate bonds denominated in U.S. management companies and fund managers as well dollars have exhibited resilient yields, with an average of as institutional investors such as pension funds and 5.5 percent yield to maturity (according to the JP Morgan others): IFC hopes that investment communities will CEMBI Index) for the past three years. Furthermore, with use this report to develop their investment strategies. reduced exposure to local-currency volatility, EM The list of hard-currency bond financial institution corporate hard-currency bonds can be seen as attractive issuers will serve as a useful resource to identify investment alternatives for DM institutional investors potential investment opportunities in the emerging- who have been searching for yields outside their own market bond market. This report includes all the 804 markets. EM FIs reviewed in this analysis in Appendix E. PURPOSE OF THE REPORT • Academia: IFC hopes that universities and scholars in IFC undertook this study of hard-currency bonds to finance will use this report to develop case studies to better understand the market potential of green bonds support education in the fields of green and in emerging markets. IFC believes that conventional sustainable finance, green bonds, ESG/Sustainable hard-currency bonds are sources of future growth for Development Goal financing, and others. green bonds because such bonds often serve as a proxy 1 IMPACT OF COVID-19 recovery. In addition, investment flows toward green investments have remained relatively resilient even This report covers the data of hard-currency bonds issued during this crisis. Also, the social and sustainable bond by EM FIs up to June 2019. To bridge the gap, Figure I.1 supply saw a significant increase during the first quarter shows the monthly issuance of EM corporate bonds* of 2020**, partly due to the urgent funding need to denominated in U.S. dollars from January 2018 through respond to the pandemic. Social bonds are not only well April 2020. It shows strong issuance in the latter half of suited to address the current health care challenges of the 2019, with a higher amount of issuance compared with COVID-19 crisis but also can be used to fund the broader the same period in 2018. It also shows even stronger economic response in the long term. issuances in the first two months of 2020, until the recent outbreak of the novel coronavirus caused serious market At the time of this writing, it is uncertain when this crisis disruptions. will end and when we will see clear signs of economic recovery. For the eventual economic recovery, however, This report acknowledges negative impacts of the governments and issuers may see green and social bonds pandemic that could discourage EM FIs from issuing new as a way of meeting environmental goals, mitigating the hard-currency bonds in the short term. In addition, negative health and socioeconomic impacts, building compared with their DM counterparts, EM economies sustainable financial systems, and transitioning into a have less room for fiscal and monetary maneuvering and more balanced world economy. As market conditions could potentially be hit hard by the crisis, with impacts on return to normal, we may see some pent-up supply the financial system as well as the real economy. beginning to emerge. However, the new issuance volume of EM corporate bonds in April 2020 seems to show some signs of Figure I.1. Monthly Issuance of EM Corporate Bonds Denominated in U.S. Dollars (January 2018–April 2020) (US$ billion) 80 2018 2019 2020 70 60 50 40 30 20 10 0 May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr Source: JP Morgan CEMBI Monitors, May 2020 * Include both FIs and real sector ** HSBC Global Research “Green Bond Insights” (April 15, 2020). 2 1. An Overview of Global and Emerging Bond Markets notably, China has the highest GDP among its EM peers. Global and Emerging-Market At US$15.2 trillion, China’s GDP amounts to 17.5 percent of Gross Domestic Product (GDP) the world economy, whereas the rest of the EM together Over the past three decades, emerging-market (EM) shares 23.9 percent (Figure 1.1, panel b). countries have seen economic growth and increasing prosperity above world averages. Total EM gross domestic While both DM and EM countries see synchronized product (GDP) was less than a quarter of the global GDP economic growth trend over the past decade, EM at US$2.4 trillion in 1980 (Figure 1.1, panel a). It has since countries have continued to grow at a higher level at 3.7 grown to US$35.9 trillion and took up 41.4 percent of the percent for 2019 whereas DM countries grew at 1.7 overall US$86.6 trillion global economy in 2019. Most percent (Figure 1.2). Figure 1.1. Global Nominal GDP a. History of GDP share by major economic groups b. Global GDP share by major economic groups, US trillion EM ex China DM China . . % Percent EM . DM . % EM ex China . , . % China . , . % Sources: IMF, World Economic Outlook (October 2019); IFC analysis. Note: GDP is measured at current prices. China includes Hong Kong SAR; Macao SAR; and Taiwan, China. Total global GDP (2019 estimate) is US$86.6 trillion. DM = developing market; EM = emerging market. 3 Figure 1.2. Global Real GDP Growth GDP Growth and Bank Assets Percent Economic growth measured by the GDP growth rate has EM historically served as a proxy indicator for estimating the DM growth rate of an EM country’s banking sector assets. World Compared with their DM peers who have established . mature capital markets, EM countries rely heavily on banks as suppliers of debt finance to grow their . economies. . As of 2018, China’s total bank assets stood at US$39.0 trillion, more than quadrupled from US$9.3 trillion in 2008 (Figure 1.3, panel a), and surpassing other major economies such as the European Union (the 27-country block, which does not include the United Kingdom) and the United States, not only in terms of absolute size but also in Sources: IMF, World Economic Outlook (April 2020); IFC analysis. comparison to GDP (Figure 1.3, panel b). Note: DM = developed market; EM = emerging market. Available bank-asset-to-GDP data as of 2016 for 53 EM weighted average) at 89.4 percent, albeit varying within countries shows that the share of bank assets within the the group (Figure 1.4). Because the Chinese banking economy varies from country to country, and China has sector is so significant, Chapter 2 will analyze the EM the highest bank-asset-to-GDP ratio at 309.0 percent, in bond markets by separating China from the rest of the comparison with that of other EM countries. Outside EM countries. China, EM countries see a bank-asset-to-GDP ratio (GDP Figure 1.3. Growth of China’s Banking Sector, 2008–2018 a. Total assets of a. Total assets banking sectorof banking sector b. Bank-asset-to-GDP b. Bank-asset-to-GDP ratio ratio (US$ trillion) (US$ trillion) (Percent) (Percent) China US EU 27 China UK US EU 27 UK China US EU 27 China UK US EU 27 UK $39.0 $39.0 $35.6 $35.6 $17.0 $17.0 $11.4 $11.4 Sources: IMF, World Economic Outlook (October 2019); Global Database, CEIC; European Central Bank Statistics; Economic Research, Federal Reserve Bank of St. Louis; IFC analysis. Note: EU 27 includes the member countries of the European Union, excluding the United Kingdom. 4 Figure 1.4. Bank Assets as Percentage of GDP Ranked by EM Countries, 2016 US billion GDP Bank Assets , , China 309.0% Lebanon 276.1% Lithuania 229.9% Malaysia 198.5% United Arab Emirates 193.3% Vietnam 180.4% Panama 174.9% Bahrain 165.0% Jordan 158.9% Czech Republic 126.2% Chile 125.1% Croatia 117.6% Estonia 117.1% Thailand 112.7% South Africa 112.6% Mongolia 105.8% Hungary 105.5% Turkey 104.7% Bulgaria 97.8% Montenegro 95.9% Saudi Arabia 94.3% , , Brazil 93.9% , , India 93.1% Poland 92.1% Trinidad and Tobago 90.2% Georgia 88.6% Costa Rica 88.6% , , Russian Federation 85.8% Bolivia 84.9% Honduras 84.8% Philippines 84.3% Egypt, Arab Rep. 84.1% Sri Lanka 76.0% El Salvador 72.8% Colombia 72.4% Armenia 69.8% Uruguay 68.9% Peru 59.5% Nicaragua 57.7% EM ex-China bank-asset-to-GDP ratio Paraguay 55.7% (GDP weighted average): 89.4% Kazakhstan 54.4% Guatemala 54.3% China bank-asset-to-GDP ratio: 309% Indonesia 53.5% Ukraine 53.4% Total number of EM countries: 53 Romania 51.3% Azerbaijan 49.5% Ghana 48.5% Dominican Republic 45.6% , Mexico 43.0% Ecuador 42.3% Rwanda 35.7% Nigeria 29.4% Argentina 24.9% Total , , % % % % % % % % Sources: Bank Assets (as % of GDP), Helgi Library; OECD Data, Organisation for Economic Co-operation and Development; Economic Research, Federal Reserve Bank of St. Louis; national central banks; IFC analysis. Note: A total of 53 EM countries with available data are included. Jamaica, Mauritius, Morocco, Oman, Togo, and Zimbabwe are excluded because of a lack of data. Belarus is excluded as an extreme outlier with a bank-asset-to-GDP ratio of 667,750.3 percent. Hong Kong SAR; Macao SAR; and Taiwan, China are not included under China because of their distinct banking systems. 5 In comparison, EM countries make up 18.7 percent of the Global Bond Market global market, with US$19.9 trillion outstanding bonds as The global bond market has been growing steadily for the of 2018, within which China accounts for a total of past 15 years. From an outstanding value of US$13.4 trillion outstanding bonds, 67.3 percent of the EM US$53.0 trillion at the end of 2004, it had doubled and bond market, and 12.6 percent of the global bond market. reached US$106.8 trillion by the end of 2018 (Figure 1.5, In comparison, EM ex-China has 6.1 percent of the global panel b). bond market, contributing US$6.5 trillion in outstanding value as of the end of 2018 (Figure 1.5, panel b). DM countries dominate the landscape with a total of US$86.9 trillion outstanding value (Figure 1.5, panel a), or EM Bond Market 81.4 percent of the entire global bond market (Figure 1.5, panel a). The United States stands as the world’s single Within the EM bond market, local-currency bonds remain largest bond market, making up 38.7 percent of the global the primary capital market funding source for both bond market, with US$41.3 trillion outstanding bonds. sovereigns and corporates, with US$8.4 trillion and Next in line are the European Union, Japan, and the US$8.3 trillion in outstanding value, respectively. In United Kingdom, encompassing 20.1 percent, 11.7 percent, contrast, hard-currency bonds have a total of and 5.4 percent, respectively, of the global outstanding US$3.3 trillion in outstanding value, or 16.3 percent of the bond market (Figure 1.5, panel b). total EM bond market (Figure 1.5, panel b). Figure 1.5. Global Bond Market Size a. Share of global bond market outstanding value by b. Global bond market outstanding value by DM and EM breakdown, 2018 major regions and countries, 2018 (US$ trillion) (US$ trillion) EM sovereign local EM sovereign hard EU27 $21.4 currency, 7.8% currency, 1.0% 20.1% Japan $12.5 EM corporate 11.7% hard currency, Total global bond UK 2.0% outstanding value $5.7, 5.4% US (end of 2018): Other EM DMs, $41.3 $106.8 trillion corporate 38.7% $5.9, 5.5% Total local global bond currency, China EM EM sovereign outstanding value 7.8% $13.4, 12.6% ex-China $6.5, 6.1% hard (end of 2018): currency EM $106.8 trillion = $1.1 corporate 100% EM sovereign 5.4% hard local currency currency $2.2 DM, 81.4% $8.4 10.9% 42.1% Total EM bond c. EM bond market outstanding value outstanding value by (end of 2018): currency andsector, 2018 $19.9 trillion (US$ trillion) EM corporate $8.3 local currency 41.6% Sources: Bank of International Settlements (BIS) Debt Securities Statistics; JP Morgan CEMBI Monitor, June 2019; IFC analysis. Note: “EU 27” includes the 27 member countries of the European Union, excluding the United Kingdom. DM = developed market; EM = emerging market. 6 Within the EM hard-currency bond Figure 1.6. Sector Breakdown of EM Corporate market, corporate hard-currency bonds Hard-Currency Bond Market stand at US$2.2 trillion in outstanding a. Outstanding value by sector based on JP Morgan CEMBI Broad Diversified Index, value and account for 10.9 percent of the as of June 2019 overall EM bond market and 2.0 percent Utilities, 7.8% Consumer, of the global bond market (Figure 1.5, 7.4% panel b). The remaining US$1.1 trillion is Metals and attributed to EM sovereign hard-currency mining, 6.5% Real estate, bonds, or 5.4 percent of the overall EM 9.2% Industrial, Infrastructure, bond market and just 1 percent of the 4.9% 2.6% global bond market (Figure 1.5). TMT, 11.1% Other, 7.0% Diversified, 2.3% EM Corporate Hard- Oil and gas, 14.9% Currency Bond Pulp and paper, 1.1% Market Sector Financial institutions, Transport, 0.9% Breakdown 31.2% Within the US$2.2 trillion EM corporate hard-currency bond market, financial b. New issuance for 2018 institutions (FIs) have consistently been (US$ billion) the largest sector in terms of both Consumer, outstanding value and annual new $22.2, 6.0%Industrial, issuance. Based on the JP Morgan CEMBI $20.0, 5.4% Utilities, TMT, $16.5, Broad Diversified Index, this study finds $34.6, 9.3% 4.4% Metal and mining, that FIs make up 31.2 percent (Figure 1.6, $16.2, Oil and gas, Infrastructure, panel a) of the total EM corporate 4.3% $12.1, 3.3% $36.6, 9.8% hard-currency bond market outstanding value as of June 2019. In terms of new Other, $35.1, 9.4% Diversified, Real estate, issuance, FIs have also contributed $11.9, 3.2% $59.1, 15.8% US$132.7 billion (35.6 percent) new hard-currency bond issuance out of a Transport, Financial $9.6, 2.6% total of US$373.0 billion in 2018 alone institutions, $132.7, 35.6% (Figure 1.6, panel b). Pulp and paper, $1.5, 0.4% The persistently large share of EM FIs in the overall EM hard-currency bond Total new issuance for the year of 2018 = US$373.0 billion market prompts the need to further Sources: JP Morgan CEMBI Broad Diversified Index; JP Morgan CEMBI Monitor, June 2019; examine this market segment, and the IFC analysis. following chapter presents a deep and TMT = Technology, media, and telecom sector. comprehensive examination of hard- currency bonds issued by EM FIs. 7 Summary of Key Findings 60 EM countries hosting FIs issuing hard-currency bonds Outstanding Bond Market (June 30, 2019) Number of FIs 394 EM ex-China FIs 583 with outstanding 249 Banks 145 NBFIs bonds 289 Banks 189 China FIs 294 NBFIs 40 Banks 149 NBFIs US$266 billion EM ex-China Banks US$648 billion US$46 billion EM ex-China NBFIs Outstanding US$208 billion China Banks US$128 billion China NBFIs value Cumulative Bond Issuance (2009–2019H1) 578 EM ex-China FIs Total Number 352 Banks 226 NBFIs 804 of FIs 398 Banks 406 NBFIs 226 China FIs 46 Banks 180 NBFIs US$707 billion EM ex-China Banks US$1,448 billion US$85 billion EM ex-China NBFIs Cumulative bond US$493 billion China Banks issuance US$164 billion China NBFIs 8 2. Hard-Currency Bonds Issued by Emerging-Market Financial Institutions EM FIs’ hard-currency bond issuance history from 2009 EM FI Bond Issuance Trend through the first half of 2019 can be divided into two During the decade following the 2007–2008 global distinct phases. Between 2009 and 2013, EM ex-China FIs financial crisis, emerging-market financial institutions were the major issuers of hard-currency bonds and (EM FIs) consistently issued hard-currency bonds. Total contributed a total issuance volume of US$500.8 billion new hard-currency bond issuance in 2009 stood at (84.0 percent) over a span of five years (Figure 2.1). The US$44.1 billion, but it had surpassed the US$100 billion strong issuance history before 2014 is largely a result of mark by 2010 (Figure 2.1). government-backed efforts in restructuring and economic stimulation during the post-2008 financial In 2017, annual new issuance reached a peak of US$196.9 crisis years. billion. The momentum of EM FIs issuing hard-currency bonds has persisted, as the first half of 2019 alone already This study observed a tapering-off period for EM ex-China saw a US$98.3 billion new issuance largely due to FIs starting in 2014, with a total issuance volume of increasing issuance from China (Figure 2.1). US$291.0 billion or 34.2 percent of the total issuance Figure 2.1. History of Hard-Currency Bond Issuance by EM FIs, 2009–2019H1 (US$ billion) Cumulative issuance, 2009–2013 Cumulative issuance, 2014–2019H1 US$595.9 US$852.0 200 China accounted for 16.0% of total cumulative new issuance between ... but increased to 65.8% of total cumulative 180 2009 and 2013 ... new issuance beween 2014 and 2019H1. 160 164.3 140 Annual average: Annual average: 130.8 US$119.2 $154.9 120 109.3 95.6 100.4 98.3 97.3 100 82.9 80 74.4 68.3 66.1 66.2 60 48.2 42.2 39.8 37.2 39.0 40 28.4 32.1 20 10.6 14.4 1.9 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019H1 EM ex-China FIs China FIs Sources: Bloomberg Finance L.P.; IFC analysis. Note: EM = emerging market; FI = financial institution; H1 = first half. 9 volume during the second stage (Figure 2.1). As of June Figure 2.2. EM FI Hard-Currency Bond 2019, outstanding value of hard-currency bonds issued by Outstanding Value, as of June 30, 2019 EM ex-China FIs stands at US$312.0 billion and accounts for 48.1 percent of the overall EM FI hard-currency bond (US$ billion) market (Figure 2.2). Some key contributors to the slowdown of EM ex-China FIs issuing hard-currency bonds during the second period include the negative impact of the commodity slump on major EM energy exporters and their deteriorating ability to Total outstanding EM ex- China, value of EM FI China, finance dollar- and euro-denominated liabilities with US$336.2, hard-currency bonds, US$312.0, 51.9% as of June 30, 2019: 48.1% depreciating local currencies. US$648.2 billion In comparison, China’s FIs issued a total of US$95.1 billion during the 2009–2013 period and accounted for 16.0 percent of the period’s total EM FI bond issuance volume. However, between 2014 and the first half of 2019, China’s FIs began to catch up and quickly dominated the Sources: Bloomberg Finance L.P.; IFC analysis. Note: EM = emerging market; FI = financial institution. EM FI hard-currency bond market, with an aggregate of US$561.0 billion hard-currency bonds issued and accounting for 65.8 percent of the overall EM FI hard- currency bond issuance during this period (Figure 2.1). As Trend Analysis of Large Bond of June 2019, hard-currency bonds issued by China’s FIs have an outstanding value of US$336.2 billion, making up Issuers 51.9 percent of the overall EM FI hard-currency bond market (Figure 2.2). Fund managers usually consider bonds with issue size of above US$500 million to be more liquid and hence a The rapid increase in hard-currency bonds issued by more relevant market segment. Therefore, IFC China’s FIs since 2013 can be attributed to several key conducted an analysis to assess the depth of the factors. China’s “Big Four” banks led the way and market, focusing on the FI issuers of large bonds in significantly increased their bond issuance during this emerging markets. Figures 2.3 and 2.4 show the number period. In addition, the launch of the Belt and Road of EM FIs that issued large bonds by year, by region. In Initiative4 in 2013 created demand by way of capital 2018, 62 FIs issued at least one bond with the issue size market solutions to fund infrastructure and investment of above US$500 million. Out of 62 FIs, about half (29 projects across the initiative’s 152 countries, and therefore FIs) were in China, followed by 11 FIs in the Middle East mobilized bond-issuing activities from both FIs and and North Africa (MENA) region. On average per year, non-FI issuers in China. Lastly, China’s FIs have weathered 58 FIs issued bonds of above US$500 million in issue both the commodity slump and local currency size over the last five years (from 2013 to 2018). This depreciation during this period with resilience. analysis shows that hard-currency bonds issued by FIs 4 The Chinese government launched the Belt and Road Initiative in 2013 with a proposal to invest in infrastructure projects across 152 countries and international organizations in Asia, Europe, Africa, the Middle East, and the Americas to improve connectivity and cooperation on a transcontinental scale 10 80 70 80 have sufficient depth to construct a Figure 2.3. Number of EM FIs That Issued Bonds at or above 60 70 diversified portfolio. US$500 Million (Issue Size) 50 60 80 The other observation is that Figure 40 50 70 2.3 shows two spikes in the number of 30 40 60 issuers — in 2012 and 2017. In 2012, out 20 30 50 of 73 issuers, nearly 60 percent came (# of FIs) 10 20 40 from the Latin America and the 0 10 30 Caribbean (LAC) and Europe and 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 0 20 Central Asia (ECA) regions. However, 2010 2011 China EAP ex-China 2009 2012 LAC 2014 2013 ECA 2015MENA 2016 SA 2017 SSA 2018 since 2013, China started to show 10 EAP ex-China China LAC ECA MENA SA SSA stronger growth, and by 2017 it 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 accounted for nearly 40 percent of EAP ex-China China LAC ECA MENA SA SSA issuers of large bonds. Figure 2.5 shows the number of FI Figure 2.4. Number of EM FIs That Issued Bonds at or above 30 US$1 Billion (Issue Size)* issuers of hard-currency bonds of all 30 issue sizes, including small bonds. It 25 shows smoother growth in the 25 20 number of issuers (except for the drop 30 20 in 2015 and 2016). In 2018, 241 FIs 15 25 (# of FIs) issued hard-currency bonds, of which 15 10 105 FIs (44 percent) were in China, 20 10 followed by 51 FIs (21 percent) in LAC 5 15 and 36 FIs (15 percent) in ECA. 5 0 10 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 0 EAP ex-China 2009 2010 2011 China 2012 LAC 2014 ECA 2015MENA 2013 2016 SA 2017 SSA 2018 5 EAP ex-China China LAC ECA MENA SA SSA 0 number of EM FIs in Figure 2.3 (above US$500 million) includes the number of EM FIs in * The 2009 2010 2011 Figure 2.4 (above $1 billion). 2012 2013 2014 2015 2016 2017 2018 EAP ex-China China LAC ECA MENA SA SSA Figure 2.5. Number of EM FIs That Issued Hard-Currency Bonds of Any Issue Size 250 250 200 200 250 150 (# of FIs) 150 200 100 100 150 50 50 100 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 0 50 2010 2011 China EAP ex-China 2009 2012 LAC 2014 2013 ECA 2015MENA 2016 SA 2017 SSA 2018 EAP ex-China China LAC ECA MENA SA SSA 0 11 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Figure 2.6. Breakdown of Hard-Currency Bond Issuance by All EM FIs (US$ billion) Outstanding value Number of EM Fls 2009–2019H1 Total as of June 30, 2019: with outstanding cumulative issuance: number of US$648.2 bonds: 583 US$1,447.8 EM Fls: 804 100% NBFIs, NBFIs, 90% $174.3 $248.7 17.2% 80% NBFIs, NBFIs, 26.9% 70% 294 406 60% 49.6% 50.5% EM FIs Total 50% Banks, 40% Banks, $1,199.2 $473.8 30% Banks, Banks, 289 398 20% 10% 73.1% 50.4% 82.8% 49.5% 0% Outstanding value Number of EM Fls 2009–2019H1 Total as of June 30, 2019: with outstanding cumulative issuance: number of US$336.2 bonds: 189 US$656.1 EM Fls: 226 100% NBFIs, 90% $163.5 NBFIs, 80% $128.4 24.9% 70% 38.2% NBFIs, 60% NBFIs, 149 180 China FIs 50% 40% Banks, Banks, $492.6 30% $207.8 78.8% 79.6% 20% Banks, 40 Banks, 46 10% 61.8% 21.2% 75.1% 20.4% 0% Outstanding value Number of EM Fls 2009–2019H1 Total as of June 30 2019: with outstanding cumulative issuance: number of US$312.0 bonds: 394 US$791.8 EM Fls: 578 100% NBFIs, NBFIs, 90% $45.9 14.7% $85.2 10.8% NBFIs, NBFIs, 80% 145 226 70% 36.8% 39.1% EM 60% ex-China FIs 50% Banks, Banks, $266.0 $706.5 40% Banks, Banks, 30% 249 352 20% 10% 85.3% 63.2% 89.2% 60.9% 0% Sources: Bloomberg Finance L.P.; IFC analysis. Note: NBFIs include FIs from financial services, commercial finance, consumer finance, life insurance, and funds and trusts. EM = emerging market; FI = financial institution; H1 = first half; NBFIs = nonbank financial institutions. 12 89.2 percent of all the hard-currency bonds issued by all Analysis by Financial EM ex-China FIs (Figure 2.6). As of June 2019, hard- Institution currency bonds issued by EM ex-China banks have an During the period between 2009 and the first half of 2019, outstanding value of US$266.0 billion. The United Arab a total of 804 EM banks and nonbank financial Emirates (US$46.6 billion), Brazil (US$38.4 billion), Turkey institutions (NBFIs) issued hard-currency bonds. This (US$31.9 billion), and India (US$22.5 billion) take up the study captures key financial market participants in the EM four largest places after China in terms of outstanding FI hard-currency bond market, including banks, value as of June 2019 (Figure 2.8). commercial finance, consumer finance, financial services, life insurance, and funds and trusts (see Appendix D for a Bond Maturity full list of banks and Appendix E for a full list of FIs). This study finds that hard-currency bonds issued by EM Among the 804 FIs identified in this study, China hosts FIs have a weighted average maturity of 4.6 years. A 226 FIs with a history of issuing hard-currency bonds over further look at this study’s universe shows that hard- the past 10.5 years, with a cumulative issuance volume of currency bonds with an original maturity of 5.0 years are US$656.1 billion and an outstanding value of US$336.2 the most common, amounting to US$192.5 billion, or billion as of June 2019 (Figure 2.6). 29.7 percent of the total US$648.2 billion outstanding value as of June 2019 (Figure 2.7). Outside China, a total of 578 EM FIs have a cumulative issuance volume of US$791.8 billion hard-currency bonds This maturity feature provides a useful harbinger for during the same period and an outstanding value of future hard-currency bond issuance because investors US$312.0 billion as of June 2019 (Figure 2.6). can expect new five-year bullet bonds to be issued by EM FIs as previous bonds of similar tenors gradually come to Among EM FIs, banks are the dominant bond issuers. A maturity. total of 398 EM banks have issued a cumulative US$1,199.2 billion hard-currency bonds over the past 10.5 years, Figure 2.7. Maturity Profile of Outstanding making up 82.8 percent of the total cumulative issuance Hard-Currency Bonds Issued by EM FIs, as of volume by all EM FIs. In terms of market size, hard- June 30, 2019 currency bonds issued by these banks contribute US$473.8 billion in outstanding value, or 73.1 percent of the (US$ billion) Total outstanding value: US$648.2 billion outstanding EM FI hard-currency bond market, as of June $192.5 2019 (Figure 2.6). $156.0 China hosts 46 major banks (Figure 2.6), which contribute $122.2 US$207.8 billion worth of outstanding hard-currency bonds as of June 2019, or 43.9 percent of the overall $66.4 outstanding hard-currency bonds issued by all EM banks $41.2 $25.8 $15.3 $10.8 $9.1 (Figure 2.8). $7.7 $1.2 1 2 3 4 5 6 7 8 9 10 10+ Outside China, a total of 352 banks together have Bond maturity in years cumulatively issued US$706.5 billion hard-currency bonds Sources: Bloomberg Finance L.P.; IFC analysis. during the past 10.5-year period, accounting for Note: EM = emerging market. 13 Figure 2.8. Outstanding Value of EM Hard-Currency Bonds Issued by Banks by Country, as of June 30, 2019 (US$ billion) China 207.8 United Arab Emirates 46.6 Brazil 38.4 Turkey 31.9 India 22.5 Russian Federation 18.8 Mexico 11.4 Kazakhstan 10.8 Poland 8.4 Colombia 8.1 Thailand 8.0 Chile 7.1 Peru 6.7 Czech Republic 6.6 Malaysia 6.6 Panama 6.6 Philippines 4.8 South Africa 2.8 Nigeria 2.6 EM ex- China Ukraine 1.9 China Banks Oman 1.8 Banks $207.8 Indonesia 1.8 $266.0 43.9% Lebanon 1.3 56.1% Argentina 1.1 Costa Rica 1.0 Azerbaijan 1.0 Bahrain 0.9 Guatemala 0.8 Estonia 0.8 Total outstanding Georgia value by EM banks as of 0.8 June 30, 2019: Togo 0.6 US$473.8 billion Romania 0.6 Paraguay 0.5 Mongolia 0.5 El Salvador 0.4 Armenia 0.3 Dominican Republic 0.3 Sri Lanka 0.3 Bulgaria 0.2 Honduras 0.2 Mauritius 0.1 Croatia 0.1 Jamaica 0.1 Total number of EM banks: 398 Lithuania 0.0 Total number of EM countries reviewed: 60 Jordan 0.0 Montenegro 0.0 Belarus 0.0 Uruguay 0.0 Hungary 0.0 Zimbabwe 0.0 Sources: Bloomberg Finance L.P.; IFC analysis. Note: The following 10 EM countries—Bolivia; Ecuador; Egypt; Arab Rep.; Ghana; Morocco; Nicaragua; Rwanda; Saudi Arabia; Trinidad and Tobago; and Vietnam—do not have outstanding hard-currency bonds issued by banks as of June 30, 2019, and therefore are not shown in the figure. EM = emerging market. 14 Figure 2.9. Number of EM Banks and Cumulative Hard-Currency Bond Issuance, 2009–2019H1 (Left chart: total number of banks; right chart: cumulative issuance by banks in US$ billion) China 46 492.6 Russian Federation 27 54.3 Brazil 26 87.8 Panama 25 9.6 Turkey 22 50.4 United Arab Emirates 14 222.7 India 14 67.1 Armenia 12 0.5 Belarus 12 0.9 Peru 11 9.9 Chile 9 18.2 Nigeria 9 5.6 Costa Rica 9 2.7 Azerbaijan 9 2.2 Paraguay 9 1.1 Mexico 8 14.7 Argentina 8 2.1 Kazakhstan 7 14.5 Colombia 7 13.6 Thailand 7 12.6 Philippines 7 6.2 South Africa 7 6.6 Lebanon 6 1.9 Czech Republic 5 12.7 Malaysia 5 10.6 Ukraine 5 6.8 Indonesia 5 2.9 Bulgaria 5 0.3 Lithuania 5 0.1 Hungary 4 37.9 Ecuador 4 0.8 Bolivia 4 0.1 Poland 3 11.8 Bahrain 3 2.6 Guatemala 3 1.1 Romania 3 0.7 Sri Lanka 3 2.1 Oman 2 2.7 Estonia 2 0.8 Georgia 2 1.2 El Salvador 2 0.4 Jamaica 2 0.1 Zimbabwe 2 0.1 Saudi Arabia 2 2.0 Egypt, Arab Rep. 2 0.6 Trinidad and Tobago 2 0.2 Togo 1 0.6 Mongolia 1 1.0 Dominican Republic 1 0.3 Honduras 1 0.2 Mauritius 1 0.1 Croatia 1 0.2 Jordan 1 0.0 Montenegro 1 0.0 Uruguay 1 0.0 Vietnam 1 0.3 Morocco 1 Total number of banks: 398 0.3 Total cumulative issuance by banks: Ghana 1 Total number of EM countries 0.0 US$1,199.2 billion Rwanda 0 reviewed: 60 - Nicaragua 0 - Sources: Bloomberg Finance L.P.; IFC analysis. Note: EM = emerging market; H1 = first half. 15 Figure 2.10. Issue Size Breakdown for Hard-Currency Bond Issue Size Bond Issued by EM FIs As of June 2019, the EM FI hard-currency bond US$33.3 845 market stood at US$648.2 billion in 5.1% 13.7% outstanding value and with 6,165 outstanding US$119.1 18.4% bonds. Out of the total EM FI hard-currency bonds, the bonds with an issue size at or above Outstanding # of Bonds 1,087 US$300 million represented 76.5 percent value 17.6% Outstanding as of June 30, 2019 (June 2019) (US$495.7 billion) in outstanding value, but 13.7 Total: US$648.2 Total: 6,165 percent (845 bonds) in outstanding number of billion bonds. For the past 10.5 years, those bonds US$495.7 4,233 have also contributed 56.1 percent of 76.5% 68.7% cumulative issuance. In contrast, bonds with an issue size of less than US$50 million US$811.7 US$283.1 56.1% 19.6% accounted for 5.1 percent (US$33.3 billion) in outstanding value and 68.7 percent (4,233 Issue size < US$50 million bonds) in number of bonds (Figure 2.10). Cumulative US$50 ≤ issue size < US$300 million issuance, 2009–2019H1 Issue size ≥ US$300 million In 2018, EM FIs issued hard-currency bonds Total: US$1,447.8 billion amounting to US$157.6 billion with 2,705 bonds in total. Of those, the study identified US$353.1 165 bonds (US$84.1 billion) with an issue size 24.4% at or above US$300 million. The breakdown Sources: Bloomberg Finance L.P.; IFC analysis. of these 165 bonds by issue size is as follows: Note: EM = emerging market; FI = financial institution; H1 = first half. • Bonds from US$300 million up to US$500 Figure 2.11. Number of Bonds at or above US$300 Million million amounted to US$24.2 billion, with (Issue Size) per year 71 bonds. 250 • Bonds from US$500 million up to US$1 billion amounted to US$50.1 billion, with 85 bonds. 200 • Bonds at or above US$1 billion amounted (Number of Bonds) 150 to US$9.8 billion, with 9 bonds Among the 41 EM countries which host at 100 least one financial institution issuing hard- currency bonds of above US$300 million, the issuance of these large bonds has been led by 50 China. In 2018, out of these 165 bonds, 101 bonds or US$50.9 billion in issue amount were 0 issued by China. China has been increasing its 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 issuance of large bonds since 2010, from only US$300m ≤ issue size < US$500m China US$300m ≤ issue size < US$500m EM ex-China US$500m ≤ issue size < US$1b China US$500m ≤ issue size < US$1b EM ex-China 6 bonds issued in 2010 to 101 bonds issued in Issue size ≥ US$1 billion China Issue size ≥ US$1 billion EM ex-China 2018 (Figure 2.11). 16 EM Region and Country Deep Dive While there is an overall upward trend and continuous momentum in the EM FI hard-currency market, wide divergences in terms of both outstanding value and cumulative issuance remain across EM regions and between countries within each region (Figure 2.12). Figure 2.12. Regional Breakdown of Hard-Currency Bonds Issued by EM FIs a. Outstanding value as of June 30, 2019 b. Cumulative issuance, 2009–2019H1 (US$ billion) SA, $28.1, SSA, $6.4, 1.0% SSA, $13.6, 0.9% SA, $76.4, 5.3% 4.3% MENA MENA $69.3 $266.4 10.7% 18.4% Total outstanding Cumulative China ECA China ECA value as of issuance volume: $656.1 $87.6 $336.2 $210.0 US$1,447.8 billion 45.3% June 30, 2019: 13.5% 51.9% 14.5% US$648.2 billion LAC $94.0 LAC 14.5% $183.4 12.7% EAP ex-China EAP ex-China $26.6 , 4.1% $41.9, 2.9% c. Outstanding value per region and largest regional contributor as of June 30, 2019 (US$ billion) 400 Numbers in black indicate regional total $362.9 outstanding value as of June 30, 2019 350 China Blue bars indicate the EM country 92.7% 300 with the largest share of outstanding value in each region. 250 Total outstanding value as of June 30, 2019: 200 US$648.2 billion United Arab 150 Brazil Turkey Emirates 42.4% 36.6% $94.0 $87.6 92.4% South 100 $69.3 India Africa 99.1% 43.7% 50 $28.1 $6.4 0 EAP LAC ECA MENA SA SSA Sources: Bloomberg Finance L.P.; IFC analysis. Note: EM = emerging market; FI = financial institution; H1 = first half. The remaining abbreviations denote IFC regions. See list of abbreviations and acronyms. 17 EAST ASIA AND PACIFIC REGION three major countries where hard-currency bonds issued by FIs have a total outstanding value of US$23.4 billion as of The East Asia and Pacific (EAP) region has consistently led June 2019 (Figure 2.13, panel b). the overall EM FI hard-currency bond market. It represents 48.2 percent of total cumulative issuance volume CHINA (Figure 2.12, panel b) and 56.0 percent of the outstanding value (Figure 2.12, panel a). However, hard-currency bonds As of June 2019, hard-currency bonds issued by China’s issued by FIs outside China had an outstanding value of 226 FIs make up US$336.2 billion and 92.7 percent of the US$26.6 billion as of June 2019, or a 7.3 percent share of the region’s FI hard-currency bond market (Figure 2.13, region’s total outstanding bonds. A detailed breakdown panel a). shows that Malaysia, Thailand, and the Philippines are Figure 2.13. East Asia and Pacific Region FI Hard-Currency Bond Outstanding Value, as of June 30, 2019 (US$ billion) a. Regional breakdown b. EAP ex-China breakdown EAP ex-China, Thailand, $26.6, 7.3% Malaysia, $8.0, 30.1% $9.4, 35.4% East Asia East Asia and and Pacific Pacific ex-China Total outstanding: Total outstanding: US$362.9 billion US$26.6 billion Philippines, China, Mongolia, $5.9, 22.3% $336.2, 92.7% $0.8, 3.0% Indonesia, $2.4, 9.2% Sources: Bloomberg Finance L.P.; IFC analysis. FI = financial institution; EAP = East Asia and Pacific. 363 US$ BILLION 698 US$ BILLION 272 72 TOTAL CUMULATIVE FI ISSUING BANKS ISSUING OUTSTANDING VALUE ISSUANCE HARD-CURRENCY HARD-CURRENCY AS OF JUNE 30, 2019 (2009-2019H1) BONDS BONDS 18 LATIN AMERICA AND THE Panama—a dollarized economy and offshore financial CARIBBEAN REGION center—has a noticeably large number of 59 FIs issuing hard-currency bonds, albeit with a much smaller The Latin America and the Caribbean (LAC) region has the cumulative issuance volume of US$12.4 billion second largest number of FIs issuing hard-currency (Figure 2.20). In fact, Panama exhibits a unique bonds. With a total of 233 FIs (132 banks and 101 NBFIs), characteristic of hosting a large number of FIs issuing the region has seen US$183.4 billion of cumulative hard-currency bonds of small issue sizes. Average issue issuance of hard-currency bonds (Figure 2.12). Brazil leads size for Panama is at US$17.3 million per bond issuance, other regional peers in terms of market size. As of June whereas, in contrast, average bond issue size stands at 2019, hard-currency bonds issued by Brazil’s 37 FIs have an US$57.1 million across all FI hard-currency bonds included outstanding value of US$39.8 billion, making up in this study. 42.4 percent of the region’s overall FI hard-currency bond market (Figure 2.14). Figure 2.14. Latin America and the Caribbean Region FI Hard-Currency Bond Outstanding Value, as of June 30, 2019 (US$ billion) lion) Mexico, Mexico, Brazil, $14.6, 15.5% Brazil, $39.8,$14.6, 15.5% $39.8, 42.4% Latin America 42.4% Latin America and the Colombia, and the Caribbean Colombia, $10.4, 11.0% Caribbean Total $10.4, outstanding: 11.0% Total outstanding: US$94.0 billion Panama, US$94.0 billion Panama, $8.6, 9.1% LAC 9.1% Other 13$8.6, countries, Chile, Peru, Other 13 LAC Peru, $5.0, 5.3% $7.2, 7.7% $8.4, 8.9% countries, Chile, $5.0, 5.3% $7.2, 7.7% $8.4, 8.9% Sources: Bloomberg Finance L.P.; IFC analysis. Note: FI = financial institution; LAC = Latin America and the Caribbean. 94 US$ BILLION 183 US$ BILLION 233 132 TOTAL CUMULATIVE FI ISSUING BANKS ISSUING OUTSTANDING VALUE ISSUANCE HARD-CURRENCY HARD-CURRENCY AS OF JUNE 30, 2019 (2009-2019H1) BONDS BONDS 19 EUROPE AND CENTRAL ASIA issuance volume, with US$63.9 billion and US$51.0 billion, REGION respectively, during the past 10.5-year period (Figure 2.20). The Europe and Central Asia (ECA) region is the third Hard-currency bonds issued by FIs from Russia declined largest region hosting FIs that issue hard-currency bonds. over the past 10.5 years before a significant bounce-back During the past 10.5 years, FIs in the region have issued a during the first half of 2019. In comparison, FIs from Turkey total of US$210.0 billion hard-currency bonds and share have been consistently increasing their hard-currency 14.5 percent of the overall EM cumulative issuance volume bond issuance during the same period. Turkey’s 25 FIs—of (Figure 2.12, panel b). which 22 are banks (Figure 2.8)—are prominent hard- currency bond issuers, especially during the past 5 years. As The Russian Federation and Turkey are the two leading of June 2019, hard-currency bonds issued by Turkey’s FIs countries in the region and have contributed more than have an outstanding value of US$32.0 billion, making up half of the region’s cumulative issuance volume. 36.6 percent of the region’s total FI hard-currency bond Individually, both countries are ranked as the fifth and sixth market, whereas Russia’s FIs share another 26.1 percent, largest EM-issuing countries in terms of cumulative with an outstanding value of US$22.8 billion (Figure 2.15). Figure 2.15. Europe and Central Asia Region FI Hard-Currency Bond Outstanding Value, as of June 30, 2019 (US$ billion) Kazakhstan, $10.9, 12.4% Russian Federation, $22.8, Poland, 26.1% $8.6, 9.8% Europe and Central Asia Czech Republic, Total outstanding: $6.9, 7.9% US$87.6 billion Other 12 ECA countries, $6.3, 7.2% Turkey, $32.0, 36.6% Source: Bloomberg Finance L.P.; and IFC analysis. Note: ECA = Europe and Central Asia; FI = financial institution. 88 US$ BILLION 210 US$ BILLION 192 125 TOTAL CUMULATIVE FI ISSUING BANKS ISSUING OUTSTANDING VALUE ISSUANCE HARD-CURRENCY HARD-CURRENCY AS OF JUNE 30, 2019 (2009-2019H1) BONDS BONDS 20 MIDDLE EAST AND NORTH hard-currency bonds over the past 10.5 years and is AFRICA REGION ranked the second largest EM country in the EM FI hard-currency bond market immediately after China The Middle East and North Africa (MENA) region is the (Figure 2.19). As of June 2019, hard-currency bonds issued region with the second largest cumulative issuance by the United Arab Emirates’ FIs have an outstanding volume—at US$266.4 billion and 18.4 percent of the value of US$64.0 billion, accounting for 92.4 percent of market—during the 10.5-year span (Figure 2.12). However, the region’s FI hard-currency bond market (Figure 2.16). the outstanding value of hard-currency bonds issued by FIs from the region stands at US$69.3 billion as of June Other EM countries in the region with an issuance history 2019, ranked after EAP, LAC, and ECA (Figure 2.12). include Bahrain, Egypt, Jordan, Lebanon, Morocco, Oman, and Saudi Arabia. Together, a total of 22 FIs from these The United Arab Emirates (UAE) has been a major countries make up the remaining US$5.2 billion contributor to the region’s hard-currency bond market. outstanding hard-currency bonds as of June 2019 (see With 28 issuing FIs, the United Arab Emirates has Appendix C, Middle East and North Africa Region table). cumulatively issued US$253.9 billion (Figure 2.20) of Figure 2.16. Middle East and North Africa Region FI Hard-Currency Bond Outstanding Value, as of June 30, 2019 (US$ billion) Other 7 MENA countries, $5.2, 7.6% Middle East and North Africa Total outstanding: $69.3 billion United Arab Emirates, $64.0, 92.4% Sources: Bloomberg Finance L.P.; IFC analysis. Note: FI = financial institution; MENA = Middle East and North Africa. 69 US$ BILLION 266 US$ BILLION 50 31 TOTAL CUMULATIVE FI ISSUING BANKS ISSUING OUTSTANDING VALUE ISSUANCE HARD-CURRENCY HARD-CURRENCY AS OF JUNE 30, 2019 (2009-2019H1) BONDS BONDS 21 SOUTH ASIA REGION largest EM country in cumulative issuance volume, with US$74.3 billion from 20 FIs (Figure 2.20). As of June 2019, The South Asia (SA) region has seen a cumulative hard-currency bonds issued by FIs from India have an issuance of US$76.4 billion hard-currency bonds for the outstanding value of US$27.8 billion, dominating the past 10.5 years and contributed 5.3 percent to the overall region’s FI hard-currency bond market with a 99.1 percent EM FI hard-currency bond market (Figure 2.12). India and share (Figure 2.17). Sri Lanka are the only two countries in the region hosting FIs that have a history of issuing hard-currency bonds during the past 10.5-year period. India remains the fourth Figure 2.17. South Asia Region FI Hard-Currency Bond Outstanding Value, as of June 30, 2019 (US$ billion) Sri Lanka, $0.3, 0.9% South Asia Total outstanding: US$28.1 billion India, $27.8, 99.1% Sources: Bloomberg Finance L.P.; IFC analysis. Note: FI = financial institution. 28 US$ BILLION 76 US$ BILLION 23 17 TOTAL CUMULATIVE FI ISSUING BANKS ISSUING OUTSTANDING VALUE ISSUANCE HARD-CURRENCY HARD-CURRENCY AS OF JUNE 30, 2019 (2009-2019H1) BONDS BONDS 22 SUB-SAHARAN AFRICA REGION South Africa and Nigeria stand out as two key EM countries with FIs contributing a sizable amount of Compared with its EM peers, the Sub-Saharan Africa hard-currency bonds, together accounting for (SSA) region makes up the smallest share of the EM FI 84.4 percent of the region’s outstanding hard-currency hard-currency bond market in terms of both issuance bonds as of June 2019 (Figure 2.18). With 9 FIs, of which 7 volume and outstanding value. Over the past 10.5 years, are banks, South Africa has contributed a cumulative FIs from Sub-Saharan Africa have issued in total US$13.6 issuance volume of US$6.6 billion, ranked 20th among its billion hard-currency bonds, or 0.9 percent of the overall global EM peers (Figure 2.20). Closely following South EM FI hard-currency bond market (Figure 2.12, panel b). Africa, Nigeria has issued US$5.8 billion hard-currency Similarly, hard-currency bonds issued by the region’s FIs bonds by its 10 FIs during the same period and ranked 21st have an outstanding value of US$6.4 billion as of June among its global peers (Figure 2.20). 2019, just 1.0 percent of the entire US$648.2 billion EM FI hard-currency market (Figure 2.12, panel a). Figure 2.18. Sub-Saharan Africa Region FI Hard-Currency Bond Outstanding Value, as of June 30, 2019 (US$ billion) Other 5 SSA countries, $1.0, South Africa, 15.6% $2.8, 43.7% Sub-Saharan Africa Total outstanding: US$6.4 billion Nigeria, $2.6, 40.7% Sources: Bloomberg Finance L.P.; IFC analysis. Note: FI = financial institution; SSA = Sub-Saharan Africa. 6 US$ BILLION 14 US$ BILLION 32 21 TOTAL CUMULATIVE FI ISSUING BANKS ISSUING OUTSTANDING VALUE ISSUANCE HARD-CURRENCY HARD-CURRENCY AS OF JUNE 30, 2019 (2009-2019H1) BONDS BONDS 23 Figure 2.19. EM FI Hard-Currency Bond Outstanding Value by Country, as of June 30, 2019 (US$ billion) China 336.2 United Arab Emirates 64.0 Brazil 39.8 Turkey 32.0 India 27.8 Russian Federation 22.8 Mexico 14.6 Kazakhstan 10.9 Colombia 10.4 Malaysia 9.4 Poland 8.6 Panama 8.6 Peru 8.4 Thailand 8.0 Chile 7.2 Czech Republic 6.9 Philippines 5.9 South Africa 2.8 Nigeria 2.6 Indonesia 2.4 Bahrain 2.2 Ukraine 1.9 Oman 1.8 Argentina 1.4 Lebanon 1.3 Georgia 1.1 Costa Rica 1.0 Azerbaijan 1.0 Estonia 0.9 Guatemala 0.8 Mongolia 0.8 Togo 0.6 Romania 0.6 Paraguay 0.5 Dominican Republic 0.4 El Salvador 0.4 Mauritius 0.4 Armenia 0.3 Bulgaria 0.3 Sri Lanka 0.3 Ecuador 0.2 Honduras 0.2 Hungary 0.1 Croatia 0.1 Jamaica 0.1 Uruguay 0.1 Nicaragua 0.0 Lithuania 0.0 Jordan 0.0 Ghana 0.0 Montenegro 0.0 Zimbabwe 0.0 Belarus 0.0 Bolivia 0.0 Total outstanding value as of June 30, 2019: US$648.2 billion Saudi Arabia - Egypt, Arab Rep - Vietnam - Total number of EM countries reviewed: 60 Trinidad and Tobago - Morocco - Rwanda - 0 10 20 30 40 50 60 70 Sources: Bloomberg Finance L.P.; IFC analysis. Note: EM = emerging market; FI = financial institution; H1 = first half. EM countries with no outstanding hard-currency bonds as of June 30, 2019, are shown as “-“. EM countries with an outstanding value of “0.0” have outstanding hard-currency bonds, whose outstanding value is too small and rounded to US$0.0 billion. 24 Figure 2.20. Number of FIs and Cumulative Hard-Currency Bond Issuance by Country, 2009–2019H1 (Left chart: total number of FIs; right chart: cumulative issuance, US$ billion) China 226 656.1 Panama 59 12.4 Russian Federation 48 63.9 Brazil 37 91.7 United Arab Emirates 28 253.9 Turkey 25 51.0 India 20 74.3 Mexico 20 19.7 Peru 20 12.8 Argentina 17 3.3 Czech Republic 16 14.0 Bulgaria 16 0.5 Chile 15 19.3 Armenia 15 0.5 Indonesia 14 4.2 Costa Rica 13 2.7 Belarus 12 0.9 Colombia 11 15.9 Malaysia 11 14.5 Nigeria 10 5.8 Azerbaijan 10 2.5 Paraguay 10 1.1 Poland 9 12.8 Philippines 9 8.9 South Africa 9 6.6 Kazakhstan 8 14.6 Thailand 8 12.8 Hungary 7 38.5 Bahrain 7 4.8 Lebanon 7 2.1 Ecuador 7 1.0 Lithuania 7 0.1 Bolivia 7 0.1 Ukraine 6 7.6 Estonia 6 0.9 Mauritius 6 0.4 Georgia 4 1.5 Sri Lanka 3 2.1 Dominican Republic 3 1.2 Guatemala 3 1.1 Romania 3 0.7 Jamaica 3 0.2 Zimbabwe 3 0.1 Oman 2 2.7 Saudi Arabia 2 2.0 Mongolia 2 1.3 Egypt, Arab Rep. 2 0.6 El Salvador 2 0.4 Vietnam 2 0.3 Trinidad and Tobago 2 0.2 Uruguay 2 0.1 Ghana 2 0.0 Togo 1 0.6 Morocco 1 0.3 Croatia 1 0.2 Total cumulative issuance of EM FIs: Total number of EM FIs: 804 Honduras 1 0.2 Total number of EM countries US$1,447.8 billion Rwanda 1 0.1 Nicaragua reviewed: 60 1 0.1 Jordan 1 0.0 Montenegro 1 0.0 Sources: Bloomberg Finance L.P.; IFC analysis. EM = emerging market; FI = financial institution; H1 = first half. 25 26 3. Green Bond Markets: Linkage to Hard-Currency Bonds year bullet bonds (Figure 2.7). It is reasonable to expect Proxy for Green Bond Market rapid new issuances as existing bonds mature, with Growth the possibility that some of these new issuances could IFC initiated this study of hard-currency bonds to better be green bonds. understand the market potential of green bonds in emerging markets. IFC believes that hard-currency bonds • In emerging markets, most countries rely heavily on issued by financial intuitions are sources of future growth bank intermediation to supply debt financing. As a for green bonds issuances for the following reasons: result, financial institutions are the largest issuing sector of green bonds, accounting for 59 percent of • In emerging markets, 52 percent of green bond cumulative green bond issuance (2012-19) in issuances are denominated in U.S. dollars or euros in comparison with 19 percent in developed countries 2019. This indicates that the conventional hard- (Figure 3.2). currency bonds can be seen as a useful proxy to estimate green bond market growth (Figure 3.1). • 19 EM countries host financial institutions that issue green bonds. With 41 EM countries that host at least • Nearly 49 percent of the EM FI hard-currency bonds one financial institution issuing hard-currency bonds (in outstanding value) are either three-year or five- of above US$300 million, there are significant opportunities for green bonds issuances to grow. Figure 3.1. Emerging-Market Green Bonds: Figure 3.2. Emerging-Market Green Bonds: Annual Issuance by Currency Annual Issuance by Sector (US$ billion) (US$ billion) 60 60 Municipal Local Currency Government Agency Hard Currency Sovereign 50 Chinese yuan 50 Nonfinancial corporates Financial institutions 40 40 30 30 20 20 10 10 0 0 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Source: IFC/Amundi Emerging Market Green Bonds Report, 2019. Source: IFC/Amundi Emerging Market Green Bonds Report, 2019. 60 27 50 Issuance of green bonds in emerging markets was 3.1 The Current State of the percent (on average) of new bonds issued in 2019 (Figure Green Bond Market 3.4). It is noteworthy that the percentage of green bond Globally, the green bond market exceeded expectations in issuance in new bonds in EM ex-China countries (4.0 2019, with record issuance of US$240 billion driven by percent) exceeded that of China (2.7 percent) in 2019. nonfinancial corporate issuance. The nascent market for sustainability bonds doubled in size, with issuance of over EM green bond growth continues to be led by China US$40 billion in 2019 (Figure 3.3). Emerging-market green (Figure 3.5), with the East Asia and the Pacific region bond issuance increased by 21 percent to US$52 billion, accounting for 81% of the cumulative issuance (2012-19). bringing the outstanding value to US$168 billion. Although China has issued more than US$30 billion in green bonds each year since 2016, its issuance in 2019 declined by 7 percent from the previous year. Other Figure 3.3. Global Green Bonds: Annual Issuance by Segment emerging markets drove the overall growth in 2019 with US$18 billion of issues, nearly triple that in 2018. The (US$ billion) leading issuers were: India, Chile, Poland, the Philippines, 300 Developed-market Green Bonds the United Arab Emirates, and Brazil, demonstrating 250 Emerging-market Green Bonds greater geographical diversification. Stronger growth in Supranational Green Bonds green bond issuance outside China was attributable to Sustainability Bonds 200 increasing awareness and know-how about green bonds among both issuers and investors and increasing demand 150 for environment, social, and governance (ESG) products. 100 Financial institutions remain the largest green bond 50 issuing sector in emerging markets. Regarding the volume of new issuance in 2019, financial institutions accounted 0 2012 2013 2014 2015 2016 2017 2018 2019 Figure 3.4. Global Green Bonds: Market Size (Outstanding value)1 (US$ billion; percent) 600 Developed-markets Green Bonds (size) 4.0 Emerging-markets Green Bonds (size) 526 3.5 500 Developed-markets Percent of Green Bonds Outstanding Value (US$ billion) Emerging-markets 3.0 Percent of green bonds (%) 400 Percent of Green Bonds 2.5 300 328 2.0 213 1.5 200 168 136 1.0 95 100 63 104 0.5 47 32 2 5 0 0.0 2014 2015 2016 2017 2018 2019 Figure 3.3 and 3.4 source: IFC Global Macro & Market Research, Bloomberg, Dealogic, Environmental Finance, Climate Bonds Initiative. 1 Sustainability bonds are debt instruments whose proceeds will finance or refinance a combination of green and social projects. 28 for 47 percent, followed by nonfinancial corporates Figure 3.5. Emerging Market Green Bond Issuance, (35 percent), sovereigns (12 percent), government 2012-2019 agencies (5 percent), and municipalities (0.1 (US$ billion; percent) percent). Nonfinancial corporates and sovereigns both increased their share of new green bond issues 60 China Green Bond 4.0 Issuance (left scale) (Figure 3.2). EM ex-China Green 3.5 50 Bond Issuance Annual issuance amount (US$ billion) (left scale) 3.0 The issue size of EM green bonds ranged from US$1.5 Percent of green bonds (%) 40 China, % of million to US$2.9 billion in 2019. Benchmark-sized Green Bonds 2.5 (right scale) bonds of at least US$300 million numbered more 30 EM ex-China, 2.0 than 60 in 2019, marking a year-on-year increase of % of Green Bonds 25%. The majority of emerging market green bonds (right scale) 1.5 20 are medium-term instruments, with 60 percent 1.0 having a tenor of either three years or five years. In 10 emerging markets, renewable energy makes up the 0.5 largest sector for green bonds use of proceeds, 0 0.0 followed by transport, green buildings, waste, water, 2014 2015 2016 2017 2018 2019 biodiversity conservation, and adaptation. Source: IFC Global Macro & Market Research, Bloomberg, Dealogic, Environmental Finance, Climate Bonds Initiative Box 3.1. Definition of Green, Social and Sustainability Bonds Green bonds: Green bonds are fixed-income instruments with proceeds earmarked exclusively for new and existing projects that have environmental benefits. The Green Bond Principles (GBP) developed under the auspices of the International Capital Markets Association (ICMA) have four components: use of proceeds, process for project evaluation and selection, management of proceeds, and reporting. A number of countries and jurisdictions have developed their own set of guidelines for green bond issuance, many of which align with the GBP. Social bonds: The use of proceeds from social bonds is directed toward projects that aim to achieve positive social outcomes, especially but not exclusively for a target population. ICMA’s Social Bond Principles have four components analogous to the GBP: use of proceeds, process for project evaluation and selection, management of proceeds, and reporting. Sustainability bonds: Sustainability bonds are debt instruments whose proceeds will finance or refinance a combination of green and social projects. The Green Sustainability Social Bond Bond Bond Sustainability Bond Guidelines established by ICMA are aligned with the four core components of both Green Bond Principles and Social Bond Principles Source:ICMA 29 4. Technical Assistance Program: to Stimulate the Supply of Green Bonds IFC’s Green Bond Technical Assistance Program (GB-TAP) EXAMPLE 1: focuses on accelerating the growth of green bonds in RESEARCH/KNOWLEDGE emerging markets. The key objective of the program is to SHARING stimulate the supply of green bonds issued by financial institutions in emerging markets by creating global public As a thought leader, the IFC team selects themes of goods through (a) sharing knowledge, (b) building research reports that are timely and relevant for the capacity through training, (c) disseminating Green Bond investment communities, academia, and bond issuers in Principles, and (d) enhancing the quality of information financial sectors. This research report, “Emerging Markets: disclosure from green bond issuers. The GB-TAP is an Assessment of Hard-Currency Bond Market,” is an IFC-managed technical assistance program in partnership example of the team’s research work funded by GB-TAP. with Luxembourg’s Ministry of Finance, the Swedish International Development Cooperation Agency (SIDA) IFC used this report for several purposes related to other and Switzerland’s State Secretariat for Economic Affairs GB-TAP activities: (SECO) (Figure 4.1). • It used the list of emerging-market financial institution (EM FI) issuers to select the participants for FIGURE 4.1. Green Bond Technical Assistance Program Global Public Goods 1 2 3 4 Training Green bond principles Enhanced issuer Knowledge sharing dissemination reporting • Executive Education • Green bond principles • ESG databases • Events/workshop • E-training/E-diploma dissemination • External reviews and • Case studies annual impact • Research reporting methodologies 30 the five-day executive education program offered creating an effective task force team and practicing mock under GB-TAP. (Please refer to Example 2) roadshow presentation to investors. • It also used this list to help develop the Environmental, The program offered two cohorts in 2019 and has trained Social, and Governance (ESG) database, which is one 61 participants from 20 financial institutions in 9 of the GB-TAP funded initiatives, to address investors’ countries. To date, three of those financial institutions needs for more comprehensive information disclosure have successfully issued green bonds (Figure 4.2). in the ESG area. (Please refer to Example 3) EXAMPLE 3: EXAMPLE 2: ESG DATABASE INITIATIVE FIVE-DAY EXECUTIVE EDUCATION IFC has been exploring ways to encourage bond issuers in PROGRAM ON GREEN BONDS emerging markets to improve disclosure of their ESG AND SUSTAINABLE FINANCE performance indicators. IFC has retained a European The Green Bond and Sustainable Finance Executive specialized data provider through a request for proposal Training program is a first-of-its-kind initiative that was (RFP). The data provider is a global financial technology conceived by IFC, the International Capital Market company that combines artificial intelligence (AI) Association (ICMA) and the Stockholm School of analytics and ESG big data. Economics Executive Education. It provides participants with a broad overview of the green bond market and the The data provider will expand the availability of ESG data necessary skill set to address the operational complexities by collecting ESG information from public sources as of issuing green bonds. Those skills range from technical defined by the IFC ESG Performance Indicators. This knowledge such as selection of “eligible assets,” effective initiative is funded by GB-TAP. The ESG data collected by treasury management, and reporting requirements to the data provider will be available for open access through its platform as a global public good. FIGURE 4.2. GB-TAP Supports Green Bond Supply Green Bond Funds IFC Corporations Switzerland Issuing bonds Green Bond Bond Other (financial Sweden Technical subscription private Assistance Capacity building institutions and Luxembourg Program to enable green other enterprises) bond issuance Other o cial O cial Private Note: GB-TAP = Green Bond Technical Assistance Program. 31 32 5. An Effective ESG Management: Critical Element in Green Bond Issuance There are still some large gaps between best international important. The lack of such information makes the practices and the requirements of local laws in emerging decision-making process even more complex. It is crucial markets. Sound ESG regulations are not effectively to differentiate strong ESG performers from the laggards. enforced in many of these markets. The costs, as well as In the context of green bonds, the scope and quality of the resources, required to cover these gaps present a second opinions on green assets is critical for the significant obstacle and are often considered by financial investors. In addition, investors pay an equal amount of institutions to be a competitive disadvantage. Another attention to disclosure on ESG management systems and important aspect that’s particularly relevant for banks ESG assessment standards. operating in smaller economies is lack of choice. Given the limited number of bankable projects, if there is a financing As a result, emerging-market FI issuers with an effective opportunity, banks often neglect ESG-related aspects to Environmental and Social Management System (ESMS) secure a deal. The business case for strong ESG risk are considered to be more prepared for green bond management in such cases is not always evident. issuance because they can provide assurance to investors with better disclosure. A strong signal from asset managers and institutional investors highlighting the weight attached to ESG risk For more information on ESMS, please refer to “Box 5.1. management practices in their decision making is very What Is ESG Management and Why Is It So Important?”. Box 5.1. What Is ESG Management and Why Is It So Important? Piotr Mazurkiewicz Principal Environmental and Social Risk Officer International Finance Corporation What are the main drivers encouraging financial institutions in emerging markets to adopt an Environmental and Social Management System? What are the main barriers? Most financial institutions are indirectly exposed to environmental and social (E&S) risks through their business activities. The key driver in implementing an ESMS is to Piotr Mazurkiewicz allow financial institutions to identify, assess, and manage such risks with the potential to become credit, liability, or reputational risks and with the upside to improve the quality and resilience of their portfolios. However, the concept behind 33 sound E&S risk management is relatively new to many financial institutions. The regulatory environment continues to evolve, but a level playing field is still lacking. In jurisdictions where E&S risk management is not a common practice, the introduction of such approaches by one or a limited number of financial institutions may be perceived as negatively impacting their competitive advantage. In many markets, it is not easy to find and retain experienced E&S risk management specialists. Without capacity, sound E&S risk management is just an illusion. Do most financial institutions in emerging markets have green loans on their balance sheets? Most do, but they often are not labeled as such. In general, country-level data are still scarce, but there are some positive examples. In China, the banking regulator collects robust data. On average, green loans have comprised an estimated 10 percent of loans provided by Chinese banks over the last two to three years. Climate-related loans in many other emerging markets are still well below this percentage. IFC estimates that, to meet the Paris Agreement goals, this number should be 30 percent of total bank loans by 2030 for the 21 largest emerging markets. What are the key elements of an ESMS, and why are they important in the context of green bonds? There is no one commonly accepted blueprint for an ESMS, but common elements of an effective system are recognized. Importantly, an ESMS should be built on existing credit risk management processes to ease implementation, facilitate integration, and minimize costs. Key elements include the following: • E&S policy defining the performance-based standards and practices; • Procedures for E&S assessment and management that provide safeguards that risks are adequately addressed, mitigation measures are implemented, and opportunities are identified and realized; • Monitoring and reporting processes to help with adequate reporting of E&S performance to management and investors, along with the adoption of good practices and continuous performance improvements; and • Capacity to manage E&S issues. IFC believes E&S risk management should be an integral part of any green bond issuance process. It is important to know how the green bond proceeds were used and whether the assets supported were developed and operated in line with good international industry practices. 34 Conclusion Over the past years, we observed investors becoming the largest issuer of EM FI hard-currency bonds, increasingly interested in environmental, social, and representing 52 percent (US$336 billion) of the market in governance (ESG) related investments. Even in the middle outstanding value. This study identified a total of 804 FIs of the current crisis caused by the COVID-19 pandemic, (including 226 Chinese FIs) across 60 EM countries that investors’ preference for green investments does not seem have issued hard-currency bonds over the past 10.5 years. to have diminished. Investors tend to view green issuers as Among EM FIs, banks (398 banks, or half of 804 FIs) are more long-term oriented and better able to weather the dominant players issuing 83 percent of the overall EM short-term volatility. They also value the comparative FI hard-currency bonds. advantages of green issuers, such as lower incidence of controversies, greater customer loyalty, enhanced investor While still relatively small compared to the global bond reporting, and more conservative financial planning. market, the US$648 billion hard-currency bonds issued by EM FI are sufficiently large to deploy specific investment IFC aims to play an important role in mainstreaming strategies, for example with a focus on green bonds. In green finance and in scaling up green bond issuance addition, EM FIs are the most globally diversified with an across emerging markets (EM). To assess the growth annual average of nearly 200 FIs issuing hard-currency potential of green bonds in EM, IFC conducted a detailed bonds in the last 10 years. As these issuers tend to be among analysis of the hard-currency bond market. FIs have the most sophisticated and well-equipped in EM, they can consistently been the largest sector issuing hard currency become first time green bond issuers in their countries and bonds in EM, contributing 36 percent of new issuance in may, therefore, become a strong focal point to boost green 2018. Further, EM FIs are also the largest sector issuing bond supply in EM. green bonds, accounting for 59 percent of cumulative EM green bond issuance from 2012 to 2019. Since nearly half Globally, the green bond market grew at a faster rate in 2019 of the EM FI hard-currency bonds have a 3- or 5-year with a record issuance of US$240 billion. EM green bond maturity, EM FIs are expected to continuously issue new issuances rose 21 percent to U$52 billion, bringing the bonds. This can pave the way for new issuances of green amount outstanding to US$168 billion. While China remains bonds to finance FIs’ green loan portfolios. the largest EM issuer of green bonds, the market observed a stronger growth outside China in 2019. This can be Total outstanding value of global bonds (including local attributed to both, increasing awareness and knowledge currency bonds) amounts to US$107 trillion at the end of about green bonds among issuers and increasing demand 2018, out of which EM hard-currency corporate bonds for ESG products by investors. For the eventual economic represent US$2.2 trillion or 2.0 percent of the market. recovery from the COVID-19 crisis, governments and issuers Hard-currency bonds issued by EM FIs account for may see green bonds as a way of meeting environmental US$648 billion in outstanding value as of June 2019, with goals, building sustainable financial systems, and annual new issuance of US$155 billion on average in the transitioning into a more balanced world economy. We may last 5 years. During the same period, China grew to be even see some pent-up supply beginning to emerge. 35 36 Appendix A EM Country Credit Ratings This study examines a comprehensive list of member the first half of 2019. Credit ratings information for these countries of the World Bank Group with reference to the 60 EM countries are listed below with sources from three JP Morgan CEMBI series. A total of 60 EM countries were major credit rating agencies: Standard & Poor’s, Moody’s, found to host at least one individual FI issuing at least one and Fitch Ratings. All credit ratings information is current hard-currency bond during the period between 2009 and as of May 5, 2020. Country S&P Moody’s Fitch Country S&P Moody’s Fitch 1. United Arab Emirates AA Aa2 AA 31. Vietnam BB Ba3 BB 2. Czech Republic AA- Aa3 AA- 32. South Africa BB- Ba1 BB 3. Estonia AA- A1 AA- 33. Guatemala BB- Ba1 BB- 4. China A+ A1 A+ 34. Oman BB- Ba2 BB 5. Chile A+ A1 A 35. Brazil BB- Ba2 BB- 6. Lithuania A+ A3 A 36. Dominican Republic BB- Ba3 BB- 7. Saudi Arabia A- A1 A 37. Honduras BB- B1 NA 8. Poland A- A2 A- 38. Armenia NA Ba3 BB- 9. Malaysia A- A3 A- 39. Jordan B+ B1 BB- 10. Peru BBB+ A3 BBB+ 40. Turkey B+ B1 BB- 11. Thailand BBB+ Baa1 BBB+ 41. Bolivia B+ B1 B+ 12. Panama BBB+ Baa1 BBB 42. Montenegro B+ B1 NA 13. Philippines BBB+ Baa2 BBB 43. Bahrain B+ B2 BB- 14. Mauritius NA Baa1 NA 44. Costa Rica B+ B2 B+ 15. Mexico BBB Baa1 BBB- 45. Rwanda B+ B2 B+ 16. Indonesia BBB Baa2 BBB 46. Jamaica B+ B2 B+ 17. Bulgaria BBB Baa2 BBB 47. Egypt B B2 B+ 18. Uruguay BBB Baa2 BBB- 48. Sri Lanka B B2 B- 19. Hungary BBB Baa3 BBB 49. Belarus B B3 B 20. Colombia BBB- Baa2 BBB- 50. Ghana B B3 B 21. India BBB- Baa2 BBB- 51. Mongolia B B3 B 22. Kazakhstan BBB- Baa3 BBB 52. Togo B B3 NA 23. Romania BBB- Baa3 BBB- 53. Ukraine B Caa1 B 24. Russia BBB- Baa3 BBB 54. Nigeria B- B2 B 25. Trinidad and Tobago BBB- Ba1 NA 55. Nicaragua B- B3 B- 26. Morocco BBB- Ba1 BBB- 56. El Salvador B- B3 B- 27. Croatia BBB- Ba2 BBB- 57. Ecuador SD Caa3 RD 28. Azerbaijan BB+ Ba2 BB+ 58. Lebanon SD Ca RD 29. Paraguay BB Ba1 BB+ 59. Argentina SD Ca C 30. Georgia BB Ba2 BB 60. Zimbabwe NA NA NA Sources: Standard & Poor’s; Moody’s Investors Service; Fitch Ratings; IFC analysis. Note: Country-level credit ratings are as of May 5, 2020. RD = restricted default, SD = selective default 37 Appendix B EM FI Hard-Currency Bond Outstanding Value Ranked by Country Outstanding Outstanding value (June 30, value (June 30, Country 2019) Share of EM Country 2019) Share of EM Name (US$ million) ex-China Total Name (US$ million) ex-China Total 1. United Arab 64,049 20.5% 35. El Salvador 380 0.1% Emirates 36. Mauritius 380 0.1% 2. Brazil 39,830 12.8% 37. Armenia 329 0.1% 3. Turkey 32,036 10.3% 38. Bulgaria 305 0.1% 4. India 27,804 8.9% 39. Sri Lanka 250 0.1% 5. Russia 22,816 7.3% 40. Ecuador 188 0.1% 6. Mexico 14,580 4.7% 41. Honduras 150 0.0% 7. Kazakhstan 10,894 3.5% 42. Hungary 117 0.0% 8. Colombia 10,361 3.3% 43. Croatia 59 0.0% 9. Malaysia 9,445 3.0% 44. Jamaica 58 0.0% 10. Poland 8,585 2.8% 45. Uruguay 50 0.0% 11. Panama 8,582 2.8% 46. Nicaragua 40 0.0% 12. Peru 8,410 2.7% 47. Lithuania 34 0.0% 13. Thailand 8,023 2.6% 48. Jordan 25 0.0% 49. Ghana 15 0.0% 14. Chile 7,212 2.3% 50. Montenegro 12 0.0% 15. Czech Republic 6,900 2.2% 51. Zimbabwe 10 0.0% 16. Philippines 5,942 1.9% 52. Belarus 10 0.0% 17. South Africa 2,809 0.9% 53. Bolivia 4 0.0% 18. Nigeria 2,613 0.8% 54. Egypt — 0.0% 19. Indonesia 2,439 0.8% 55. Morocco — 0.0% 20. Bahrain 2,165 0.7% 56. Rwanda — 0.0% 21. Ukraine 1,930 0.6% 57. Saudi Arabia — 0.0% 22. Oman 1,800 0.6% 58. Trinidad and — 0.0% 23. Argentina 1,408 0.5% Tobago 24. Lebanon 1,250 0.4% 59. Vietnam — 0.0% 25. Georgia 1,085 0.3% EM ex-China 311,957 100% 26. Costa Rica 1,041 0.3% Total 27. Azerbaijan 1,010 0.3% China 336,225 28. Estonia 870 0.3% EM Grand 648,181 29. Guatemala 800 0.3% Total 30. Mongolia 800 0.3% Sources: Bloomberg Finance L.P.; IFC analysis. 31. Togo 600 0.2% Note: Rows in light blue shade indicate Top 15 EM countries hosting FIs 32. Romania 561 0.2% whose hard-currency bond outstanding values as of June 30, 2019 account for more than 2% of the EM ex-China group. Rows 33. Paraguay 509 0.2% in light gray shade indicate the 6 EM countries hosting FIs whose 34. Dominican 380 0.1% hard-currency bonds have matured before June 30, 2019, and thus have Republic an outstanding value of US$0, shown as “—”. 38 Appendix C Hard-Currency Bond Issuance (2009–2019H1) and Outstanding Value by EM Regions EAST ASIA AND PACIFIC REGION (EAP) Cumulative Outstanding value Number Number issuance (June 30, 2019) Country of FIs of banks (US$ billion) (US$ billion) 1. China 226 46 656.1 336.2 2. Malaysia 11 5 14.5 9.4 3. Thailand 8 7 12.8 8.0 4. Philippines 9 7 8.9 5.9 5. Indonesia 14 5 4.2 2.4 6. Mongolia 2 1 1.3 0.8 7. Vietnam 2 1 0.3 0.0 8. Cambodia 0 0 — — 9. Fiji 0 0 — — 10. Laos 0 0 — — 11. Myanmar 0 0 — — 12. Papua New Guinea 0 0 — — 13. Tonga 0 0 — — Total 272 72 698.0 362.9 SOUTH ASIA REGION (SA) Cumulative Outstanding value Number Number issuance (June 30, 2019) Country of FIs of banks (US$ billion) (US$ billion) 1. India 20 14 74.3 27.8 2. Sri Lanka 3 3 2.1 0.3 3. Afghanistan 0 0 — — 4. Bangladesh 0 0 — — 5. Bhutan 0 0 — — 6. Maldives 0 0 — — 7. Nepal 0 0 — — 8. Pakistan 0 0 — — Total 23 17 76.4 28.1 Sources: Bloomberg Finance L.P.; IFC analysis. Note: For all the tables in Appendix B, countries in light gray shade have no FIs with a history of issuing hard-currency bonds between 2009 and the first half of 2019, shown as “—”. FI = financial institution. H1 = first half. 39 EUROPE AND CENTRAL ASIA REGION (ECA) Cumulative Outstanding Number Number issuance value (June 30, Country of FIs of banks (US$ billion) 2019) (US$ billion) 1. Turkey 25 22 51.0 32.0 2. Russia 48 27 63.9 22.8 3. Kazakhstan 8 7 14.6 10.9 4. Poland 9 3 12.8 8.6 5. Czech Republic 16 5 14.0 6.9 6. Ukraine 6 5 7.6 1.9 7. Georgia 4 2 1.5 1.1 8. Azerbaijan 10 9 2.5 1.0 9. Estonia 6 2 0.9 0.9 10. Romania 3 3 0.7 0.6 11. Armenia 15 12 0.5 0.3 12. Bulgaria 16 5 0.5 0.3 13. Hungary 7 4 38.5 0.1 14. Croatia 1 1 0.2 0.1 15. Lithuania 7 5 0.1 0.0 16. Montenegro 1 1 0.0 0.0 17. Belarus 12 12 0.9 0.0 18. Albania 0 0 — — 19. Bosnia and 0 0 — — Herzegovina 20. Kyrgyz Republic 0 0 — — 21. Moldova 0 0 — — 22. Serbia 0 0 — — Total 194 125 210.0 87.6 40 LATIN AMERICA AND THE CARIBBEAN REGION (LAC) Cumulative Outstanding Number Number issuance value (June 30, Country of FIs of banks (US$ billion) 2019) (US$ billion) 1. Brazil 37 26 91.7 39.8 2. Mexico 20 8 19.7 14.6 3. Colombia 11 7 15.9 10.4 4. Panama 59 25 12.4 8.6 5. Peru 20 11 12.8 8.4 6. Chile 15 9 19.3 7.2 7. Argentina 17 8 3.3 1.4 8. Costa Rica 13 9 2.7 1.0 9. Guatemala 3 3 1.1 0.8 10. Paraguay 10 9 1.1 0.5 11. Dominican 3 1 1.2 0.4 Republic 12. El Salvador 2 2 0.4 0.4 13. Ecuador 7 4 1.0 0.2 14. Honduras 1 1 0.2 0.2 15. Jamaica 3 2 0.2 0.1 16. Uruguay 2 1 0.1 0.1 17. Nicaragua 1 0 0.1 0.0 18. Bolivia 7 4 0.1 0.0 19. Trinidad and 2 2 0.2 0.0 Tobago 20. Belize 0 0 — — 21. Dominica 0 0 — — 22. Grenada 0 0 — — 23. Guyana 0 0 — — 24. Haiti 0 0 — — 25. Suriname 0 0 — — Total 233 132 183.4 94.0 41 MIDDLE EAST AND NORTH AFRICA REGION (MENA) Outstanding Cumulative value (June 30, Number Number issuance (US$ 2019) (US$ Country of FIs of banks billion) billion) 1. United Arab Emirates 28 14 253.9 64.0 2. Bahrain 7 3 4.8 2.2 3. Oman 2 2 2.7 1.8 4. Lebanon 7 6 2.1 1.3 5. Saudi Arabia 2 2 2.0 0.0 6. Egypt 2 2 0.6 0.0 7. Morocco 1 1 0.3 0.0 8. Jordan 1 1 0.0 0.0 9. Algeria 0 0 — — 10. Iran 0 0 — — 11. Iraq 0 0 — — 12. Libya 0 0 — — 13. Syrian Arab Republic 0 0 — — 14. Tunisia 0 0 — — 15. Yemen 0 0 — — Total 50 31 266.4 69.3 SUB-SAHARAN AFRICA REGION (SSA) Outstanding Cumulative value (June 30, Number Number issuance (US$ 2019) (US$ Country of FIs of banks billion) billion) 1. South Africa 9 7 6.6 2.8 2. Nigeria 10 9 5.8 2.6 3. Togo 1 1 0.6 0.6 4. Mauritius 6 1 0.4 0.4 5. Zimbabwe 3 2 0.1 0.0 6. Rwanda 1 0 0.1 0.0 7. Ghana 2 1 0.0 0.0 8. Angola 0 0 — — 9. Benin 0 0 — — 10. Botswana 0 0 — — 11. Burkina Faso 0 0 — — 12. Burundi 0 0 — — 13. Chad 0 0 — — 14. Congo Rep 0 0 — — 15. Congo, Dem Rep 0 0 — — 16. Côte d’Ivoire 0 0 — — 17. Equatorial Guinea 0 0 — — 18. Eritrea 0 0 — — 42 SUB-SAHARAN AFRICA REGION (SSA) Outstanding Cumulative value (June 30, Number Number issuance (US$ 2019) (US$ Country of FIs of banks billion) billion) 19. Ethiopia 0 0 — — 20. Gabon 0 0 — — 21. Gambia, The 0 0 — — 22. Guinea 0 0 — — 23. Guinea-Bissau 0 0 — — 24. Kenya 0 0 — — 25. Liberia 0 0 — — 26. Madagascar 0 0 — — 27. Malawi 0 0 — — 28. Mali 0 0 — — 29. Mozambique 0 0 — — 30. Namibia 0 0 — — 31. Niger 0 0 — — 32. Senegal 0 0 — — 33. Seychelles 0 0 — — 34. Sierra Leone 0 0 — — 35. Somalia 0 0 — — 36. Tanzania 0 0 — — 37. Uganda 0 0 — — Total 32 21 13.6 6.4 43 Appendix D List of the 398 EM Banks Issuing Hard-Currency Bonds (2009–2019H1), by EM Country and Ranked Based on Total Assets (End 2018) ARGENTINA Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 49,245 1. Grupo Financiero Galicia SA 15,013 2. Banco de Galicia y Buenos Aires SA 13,563 3. Banco Macro SA 9,107 4. Grupo Supervielle SA 3,748 5. Banco de la Provincia de Cordoba SA 3,042 6. Banco Itau Argentina SA 2,429 7. Banco Hipotecario SA 2,246 8. BACS Banco de Credito y Securitizacion SA 97 ARMENIA Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 8,108 1. Ameriabank CJSC 1,608 2. Ardshinbank CJSC 1,391 3. Armbusinessbank ZAO 1,265 4. ACBA-Credit Agricole Bank ZAO 722 5. Inecobank CJSC 605 6. Converse Bank 581 7. Armeconombank OJSC 458 8. Araratbank OJSC 456 9. Unibank OJSC 434 10. ArmSwissBank CJSC 335 11. IDBank CJSC 252 12. First Mortgage Co Universal Credit Organization LLC — Sources: Bloomberg Finance L.P.; bank audited financial statements and annual reports; IFC analysis. Note: Wherever possible, bank total assets are from fiscal year 2018 and sourced from Bloomberg. When total asset information is not available from Bloomberg, audited financial statements and annual reports from individual bank websites are used. If total asset information for the year of 2018 is not available, figures from either 2017 or 2016 are used. Banks whose total assets are shown as “—” indicate that there is no publicly accessible source to obtain total asset information. All total asset figures here are in millions of US dollar. All total asset information included in this Appendix is publicly available and can be found through each bank’s official website. Whenever currency conversion is needed, spot rate as of the last day of the reporting period is used in order to obtain the equivalent amount in US dollar. H1 in appendix title = first half. 44 AZERBAIJAN Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 6,706 1. International Bank of Azerbaijan OJSC 4,876 2. AccessBank CJSC 779 3. Unibank Commercial Bank OJSC 409 4. Muganbank OJSC 310 5. Bank of Baku 236 6. Yapi Kredi Bank Azerbaijan CJSC 96 7. Emraxbank — 8. Kovser Bank ASC — 9. Royalbank of Baku — BAHRAIN Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 60,880 1. Gulf International Bank BSC 27,546 2. Al Baraka Sukuk Al Wakala Co 23,831 3. BBK BSC 9,502 BELARUS Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 27,289 1. Belarusbank 12,163 2. Belagroprombank OAO 4,594 3. BPS-Sberbank OJSC 2,349 4. Belgazprombank JSC 2,098 5. Priorbank JSC 2,053 6. Belarusian Bank of Development and Reconstruction 1,886 7. Alfa-Bank CJSC/Belarus 1,169 8. VTB Bank Belarus CJSC 691 9. Paritetbank OJSC 224 10. Zepter Bank CJSC 63 11. Belarussian Industrial Bank OJSC — 12. Credexbank CJSC — 45 BOLIVIA Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 7,710 1. Banco Nacional de Bolivia SA 3,900 2. Fondo Financiero Privado Fassil SA 2,284 3. Banco Economico S.A. 1,527 4. Banco Mercantil Santa Cruz SA — BRAZIL Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 2,009,241 1. Itau Unibanco Holding SA 399,999 2. Banco do Brasil SA 364,993 3. Banco Bradesco SA 336,307 4. Caixa Economica Federal 325,620 5. Banco Nacional de Desenvolvimento Economico e Social 206,940 6. Banco Santander Brasil SA 186,467 7. Banco Safra SA 46,926 8. Banco BTG Pactual SA 35,458 9. Banco Votorantim SA 26,229 10. Banco do Estado do Rio Grande do Sul SA 19,945 11. Banco do Nordeste do Brasil SA 15,103 12. Banco ABC Brasil SA 8,431 13. Banco Daycoval SA 7,465 14. Banco Pan SA 7,015 15. China Construction Bank Brasil Banco Multiplo SA 5,990 16. Banco BMG SA 4,363 17. Haitong Banco de Investimento do Brasil SA 2,730 18. Banco Mercantil do Brasil SA 2,462 19. Banco Fibra SA 1,681 20. Banco BS2 SA 1,502 21. Parana Banco SA 1,442 22. Banco Sofisa SA 1,343 23. Banco Industrial do Brasil SA 831 24. Banco Cruzeiro do Sul SA — 25. Banco Gerador SA — 26. Massa Falida Do Banco BVA SA — 46 BULGARIA Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 9,929 1. CB First Investment Bank AD 5,607 2. Central Cooperative Bank AD 3,477 3. Bulgarian American Credit Bank JSCO 837 4. Sofia Commerce-Pawn Brokerage AD 8 5. Corporate Commercial Bank AD — CHILE Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 49,245 1. Banco de Credito e Inversiones SA 59,582 2. Banco Del Estado De Chile 57,956 3. Banco Santander Chile 56,480 4. Banco de Chile 51,767 5. ITAU CorpBanca 42,443 6. Banco Security SA 11,482 7. Banco BICE 10,181 8. Rabobank Chile 1,621 9. Corp Group Banking SA — CHINA Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 27,742,059 1. Industrial & Commercial Bank of China Ltd 4,026,974 2. China Construction Bank Corp 3,376,128 3. Agricultural Bank of China Ltd 3,286,977 4. Bank of China Ltd 3,091,848 5. China Development Bank 2,348,098 6. Bank of Communications Co Ltd 1,385,647 7. Hongkong & Shanghai Banking Corp Ltd 1,055,062 8. CITIC Group 984,462 9. China Merchants Bank Co Ltd 980,698 10. Industrial Bank Co Ltd 975,744 11. Shanghai Pudong Development Bank Co Ltd 914,386 12. China CITIC Bank Corp Ltd 881,982 13. China Minsheng Banking Corp Ltd 871,530 14. China Everbright Bank Co Ltd 633,471 15. Huaxia Bank Co Ltd 389,704 16. Bank of Shanghai Co Ltd 294,799 47 CHINA Total assets (End Bank issuer name 2018, US$ million) 17. Fubon Financial Holding Co Ltd 252,060 18. Hang Seng Bank Ltd 200,620 19. Bank of Taiwan 164,859 20. Standard Chartered Bank Hong Kong Ltd 150,179 21. CTBC Bank Co Ltd 129,364 22. Xiamen International Bank Co Ltd 117,192 23. Taiwan Cooperative Bank Ltd 107,507 24. Bank of East Asia Ltd 107,180 25. Mega International Commercial Bank Co Ltd 104,469 26. Land Bank of Taiwan Co Ltd 98,178 27. First Commercial Bank Co Ltd 93,490 28. Taipei Fubon Commercial Bank Co Ltd 88,576 29. E.SUN Commercial Bank Ltd 74,240 30. Chang Hwa Commercial Bank Ltd 68,015 31. Shanghai Commercial & Savings Bank Ltd/The 61,827 32. DBS Bank Hong Kong Ltd 56,906 33. Taishin International Bank 55,588 34. Taiwan Business Bank 52,896 35. Bank Sinopac 48,527 36. China International Capital Corporation Ltd 40,041 37. Dah Sing Bank Ltd 29,511 38. Shanghai Commercial Bank Ltd 25,232 39. Chong Hing Bank Ltd 24,332 40. Yuanta Securities Co Ltd 23,337 41. KGI Bank 22,323 42. Far Eastern International Bank 20,496 43. Standard Chartered Bank Taiwan Ltd 20,471 44. Public Bank Hong Kong Ltd 5,386 45. KDB Asia Ltd 1,748 46. Bendura Bank AG — COLOMBIA Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 187,393 1. Bancolombia SA 67,765 2. Banco de Bogota SA 50,275 3. Banco Davivienda SA 34,088 4. Banco Bilbao Vizcaya Argentaria Colombia SA 19,354 5. Corp Financiera Colombiana SA 8,080 6. Banco GNB Sudameris SA 7,832 7. Gilex Holding Sarl — 48 COSTA RICA Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 39,401 1. Banco Nacional de Costa Rica 11,502 2. Banco de Costa Rica 9,858 3. Banco Popular y de Desarrollo Comunal 5,806 4. BAC San Jose SA 5,703 5. Banco Davivienda Costa Rica SA 2,933 6. Banco Promerica de Costa Rica SA 1,790 7. Banco Lafise SA 770 8. Banco BCT SA 529 9. Scotiabank de Costa Rica SA 510 CROATIA Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 10,766 1. Erste&Steiermaerkische Banka dd 10,766 CZECH REPUBLIC Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 127,469 1. Ceskoslovenska Obchodni Banka as 67,421 2. UniCredit Bank Czech Republic & Slovakia AS 31,638 3. Raiffeisenbank AS 16,294 4. PPF Banka AS 10,461 5. Wuestenrot hypotecni banka AS 1,655 DOMINICAN REPUBLIC Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 505,389 1. Banco de Reservas de la Republica Dominicana 505,389 49 ECUADOR Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 7,851 1. Corp Financiera Nacional-CFN 3,817 2. Banco de la Produccion SA 3,554 3. Banco de Desarrollo del Ecuador BP 480 4. Banco Nacional de Fomento — EGYPT Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below — 1. National Investment Bank/Egypt — 2. Nile Finance Ltd — EL SALVADOR Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 6,458 1. Banco Agricola SA 4,520 2. Scotiabank El Salvador SA 1,938 ESTONIA Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 19,452 1. Luminor Bank AS/Estonia 17,531 2. LHV Group AS 1,921 GEORGIA Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 11,305 1. TBC Bank Group PLC 5,783 2. Bank of Georgia JSC 5,522 GHANA Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below — 1. EBI SA — 50 GUATEMALA Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 18,685 1. Banco Industrial SA 12,156 2. Banco Agromercantil de Guatemala SA 3,345 3. Banco de los Trabajadores 3,184 HONDURAS Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below — 1. Inversiones Atlantida SA — HUNGARY Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 71,793 1. OTP Bank Nyrt 52,069 2. Raiffeisen Bank zrt 8,627 3. CIB Bank zrt 6,782 4. OTP Mortgage Bank Ltd 4,316 INDIA Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 2,160,280 1. Bank of India 560,918 2. State Bank of India 560,918 3. HDFC Bank Ltd 186,489 4. ICICI Bank Ltd 178,698 5. Bank of Baroda 118,239 6. Axis Bank Ltd 117,428 7. Canara Bank 102,676 8. Union Bank of India 71,921 9. Yes Bank Ltd 54,940 10. IDBI Bank Ltd 46,321 11. Syndicate Bank 45,147 12. Indian Bank 40,447 13. IndusInd Bank Ltd 40,076 14. Indian Overseas Bank 36,064 51 INDONESIA Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 240,979 1. Bank Rakyat Indonesia Persero Tbk PT 89,894 2. Bank Mandiri Persero Tbk PT 83,334 3. Bank Negara Indonesia Persero Tbk PT 56,046 4. Bank Permata Tbk PT 10,598 5. Bank China Construction Bank Indonesia Tbk PT 1,109 JAMAICA Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 4,734 1. National Commercial Bank Jamaica Ltd 4,734 2. Sagicor Investments Jamaica Ltd — JORDAN Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 2,769 1. Capital Bank of Jordan 2,769 KAZAKHSTAN Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 45,952 1. Halyk Savings Bank of Kazakhstan JSC 23,513 2. Development Bank of Kazakhstan JSC 6,657 3. Kaspi Bank JSC 4,459 4. ForteBank JSC 4,432 5. Bank CenterCredit JSC 3,983 6. Eurasian Bank JSC 2,909 7. BTA Bank JSC — 52 LEBANON Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 142,558 1. Bank Audi SAL 47,257 2. BLOM Bank SAL 36,765 3. Byblos Bank SAL 25,024 4. BankMed SAL 19,029 5. Credit Libanais SAL 12,459 6. Banque BEMO Sal 2,025 LITHUANIA Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 2,965 1. Siauliu Bankas AB 2,590 2. Medicinos Bankas UAB 375 3. Bankas Snoras AB — 4. SEB Bankas AB — 5. Ukio Bankas — MALAYSIA Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 472,253 1. Malayan Banking Bhd 195,208 2. CIMB Bank Bhd 129,194 3. RHB Bank Bhd 58,821 4. Hong Leong Bank Bhd 50,122 5. AmBank M Bhd 38,908 MAURITIUS Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 6,600 1. SBM Holdings Ltd 6,600 53 MEXICO Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 268,676 1. BBVA Bancomer SA 105,172 2. Banco Santander Mexico SA 71,634 3. Banco Mercantil del Norte SA 53,653 4. Banco Inbursa SA 20,840 5. Grupo Elektra SAB 14,105 6. Banca Mifel SA 3,271 7. HSBC Mexico SA — 8. Prestaciones Finmart SAPI de CV SOFOM ENR — MONGOLIA Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 2,830 1. Trade & Development Bank of Mongolia LLC 2,830 MONTENEGRO Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 580 1. Hipotekarna Banka AD Podgorica 580 MOROCCO Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 30,996 1. BMCE Bank 30,996 NIGERIA Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 77,615 1. Zenith Bank PLC 16,384 2. First Bank of Nigeria Ltd 15,313 3. Access Bank PLC 13,629 4. United Bank for Africa PLC 13,397 5. Guaranty Trust Bank PLC 9,044 6. Fidelity Bank PLC 4,732 7. Diamond Bank PLC 3,772 8. Wema Bank PLC 1,345 9. Ecobank Nigeria Ltd — 54 OMAN Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 41,197 1. Bank Muscat SAOG 31,917 2. National Bank of Oman SAOG 9,280 PANAMA Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 105,179 1. BAC International Bank Inc 22,752 2. Banco General SA 18,704 3. Promerica Financial Corp 14,232 4. Banistmo SA 9,623 5. Banco Nacional de Panama 9,140 6. Global Bank Corp 6,555 7. Multibank Inc 4,896 8. Banesco SA 4,527 9. Banco Aliado SA 2,729 10. Banco Internacional de Costa Rica SA/Panama 1,924 11. Credicorp Bank SA 1,690 12. St Georges Bank & Co Inc 1,647 13. Capital Bank Inc 1,452 14. Banco Panama SA 1,239 15. Towerbank International Inc 1,016 16. Tower Corp 1,016 17. Banco Prival SA 884 18. Banco La Hipotecaria SA 814 19. Banco Delta SA BMF 292 20. MiFinanciera Nacional SA 46 21. ABSA Financial Corp — 22. Banco Panameno de la Vivienda SA — 23. Banco Popular y de Desarrollo Comunal/Panama — 24. Strategic Investors Group Inc — 25. UniLeasing Inc — 55 PARAGUAY Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 9,681 1. Banco Continental SAECA 3,233 2. Banco Regional SAECA 2,930 3. Sudameris Bank SAECA 1,282 4. Vision Banco SAECA 1,147 5. Banco Atlas SA 844 6. Financiera Rio SA 244 7. Banco Amambay SA — 8. Banco Bilbao Vizcaya Argentaria Paraguay SA — 9. Banco Itau Paraguay SA — PERU Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 109,362 1. Banco de Credito del Peru 42,646 2. Banco BBVA Peru SA 22,224 3. Scotiabank Peru SAA 19,820 4. Banco Internacional del Peru SAA Interbank 13,968 5. Banco Interamericano de Finanzas SA 4,003 6. Banco Pichincha 2,794 7. Banco Santander Peru SA 1,725 8. Banco Falabella Peru SA 1,196 9. Banco Ripley Peru SA 696 10. ICBC Peru Bank SA 291 11. Banco GNB Peru SA — PHILIPPINES Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 192,175 1. BDO Unibank Inc 57,704 2. Bank of the Philippine Islands 39,813 3. Land Bank of the Philippines 36,063 4. Philippine National Bank 18,781 5. Security Bank Corp 14,642 6. Union Bank of the Philippines 12,865 7. Rizal Commercial Banking Corp 12,307 56 POLAND Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 180,450 1. Powszechna Kasa Oszczednosci Bank Polski SA 86,574 2. Santander Bank Polska SA 54,962 3. mBank SA 38,914 ROMANIA Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 40,940 1. Banca Transilvania SA 19,168 2. Banca Comerciala Romana SA 17,601 3. Alpha Bank Romania SA 4,172 57 RUSSIA Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 993,855 1. Sberbank of Russia PJSC 449,832 2. VTB Bank PJSC 212,831 3. Gazprombank OJSC 94,185 4. Alfa-Bank AO 47,882 5. Bank Otkritie Financial Corp OJSC 31,572 6. Credit Bank of Moscow 30,942 7. B&N Bank JSC 18,953 8. Promsvyazbank 18,467 9. Raiffeisenbank AO 16,236 10. Sovcombank PJSC 11,977 11. Bank St Petersburg OJSC 9,710 12. Bank Uralsib OJSC 7,272 13. AK BARS Bank 6,752 14. Tinkoff Bank JSC 5,636 15. International Industrial Bank JSC 5,587 16. Home Credit & Finance Bank OOO 4,726 17. The Ural Bank for Reconstruction and Development 4,687 18. Russian Standard Bank ZAO 4,573 19. Vneshprombank Ltd 4,001 20. National Bank Trust PJSC 3,568 21. Credit Europe Bank Ltd 2,018 22. Asian Pacific Bank 1,286 23. Expobank LLC 1,165 24. Probusinessbank OAO — 25. Russian Agricultural Bank OJSC — 26. Sudostroitelny Bank — 27. Tatfondbank PJSC — SAUDI ARABIA Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 97,232 1. Banque Saudi Fransi 50,700 2. Saudi British Bank 46,532 58 SOUTH AFRICA Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 432,664 1. Standard Bank Group Ltd 147,899 2. Absa Group Ltd 89,613 3. FirstRand Bank Ltd 87,515 4. Nedbank Ltd 67,562 5. Investec Bank Ltd 37,560 6. African Bank Ltd 2,165 7. Residual Debt Services Ltd 350 SRI LANKA Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 20,837 1. Bank of Ceylon 13,026 2. National Savings Bank 5,752 3. DFCC Bank PLC 2,060 THAILAND Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 421,158 1. Siam Commercial Bank PCL 98,594 2. Kasikornbank PCL 97,596 3. Bangkok Bank PCL 96,410 4. Krung Thai Bank PCL 84,732 5. TMB Bank PCL 27,583 6. United Overseas Bank Thai PCL 16,243 7. Bank of China Thai PCL — TOGO Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 22,582 1. Ecobank Transnational Inc 22,582 59 TRINIDAD AND TOBAGO Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 7,370 1. First Citizens Bank Ltd 6,208 2. ANSA Merchant Bank Ltd 1,162 TURKEY Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 659,081 1. TC Ziraat Bankasi AS 107,429 2. Turkiye Is Bankasi AS 94,486 3. Turkiye Garanti Bankasi AS 75,443 4. Turkiye Halk Bankasi AS 73,377 5. Yapi ve Kredi Bankasi AS 70,571 6. Akbank T.A.S. 67,037 7. Turkiye Vakiflar Bankasi TAO 65,139 8. QNB Finansbank AS 30,903 9. Turk Ekonomi Bankasi AS 18,647 10. Kuveyt Turk Katilim Bankasi AS 15,200 11. Albaraka Turk Katilim Bankasi AS 7,980 12. Turkiye Sinai Kalkinma Bankasi AS 7,233 13. Sekerbank Turk AS 6,231 14. Odea Bank AS 5,935 15. Alternatifbank AS 4,887 16. Fibabanka AS 3,897 17. Aktif Yatirim Bankasi AS 2,554 18. TF Varlik Kiralama AS 1,246 19. Nurol Yatirim Bankasi AS 506 20. Bank Pozitif Kredi ve Kalkinma Bankasi AS 378 21. Asya Sukuk Co Ltd — 22. Credit Europe Bank NV — UKRAINE Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 17,903 1. Privatbank CJSC 10,040 2. State Savings Bank of Ukraine 7,862 3. ABH Ukraine Ltd — 4. Alfa Bank CJSC — 5. Finance & Credit Bank — 60 UNITED ARAB EMIRATES Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 3,209,504 1. HSBC Bank Middle East Ltd 2,558,124 2. First Abu Dhabi Bank PJSC 202,610 3. Emirates NBD PJSC 136,233 4. Abu Dhabi Commercial Bank PJSC 76,192 5. The Dubai Islamic Bank 60,904 6. Mashreqbank PSC 38,101 7. Abu Dhabi Islamic Bank PJSC 34,088 8. Union National Bank PJSC 29,131 9. Commercial Bank of Dubai PSC 20,176 10. Bank Vontobel AG 19,519 11. National Bank of Ras Al-Khaimah PJSC 14,345 12. Sharjah Islamic Bank 12,183 13. Bank of Sharjah 7,899 14. AHB Sukuk Co Ltd — URUGUAY Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 3,299 1. Banco Bilbao Vizcaya Argentaria Uruguay SA 3,299 VIETNAM Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 50,170 1. Vietnam Joint Stock Commercial Bank for Industry and Trade 50,170 ZIMBABWE Total assets (End Bank issuer name 2018, US$ million) Aggregated assets of the banks listed below 3,040 1. CBZ Holdings Ltd 2,450 2. Infrastructure Development Bank of Zimbabwe 590 61 Appendix E List of All 804 EM FIs Issuing Hard-Currency Bonds (2009-2019H1) by Alphabetical Order Financial Institution (FI) Issuer No. Name—EM ex-China Country Type 1. Aabar Investments PJSC United Arab Emirates Financial services 2. ABH Financial Ltd Russia Financial services 3. ABH Ukraine Ltd Ukraine Banks 4. ABSA Financial Corp Panama Banks 5. Absa Group Ltd South Africa Banks 6. Abu Dhabi Commercial Bank PJSC United Arab Emirates Banks 7. Abu Dhabi Islamic Bank PJSC United Arab Emirates Banks 8. ACBA-Credit Agricole Bank ZAO Armenia Banks 9. Access Bank PLC Nigeria Banks 10. AccessBank CJSC Azerbaijan Banks 11. ADFG FC Ltd United Arab Emirates Financial services 12. Admiral Markets AS Estonia Financial services 13. ADS Securities LLC United Arab Emirates Financial services 14. African Bank Ltd South Africa Banks 15. Agrinvest Trading Co Brazil Financial services 16. AHB Sukuk Co Ltd United Arab Emirates Banks 17. AK BARS Bank Russia Banks 18. AK Finansal Kiralama AS Turkey Commercial finance 19. Akbank T.A.S. Turkey Banks 20. Aktif Yatirim Bankasi AS Turkey Banks 21. Al Baraka Sukuk Al Wakala Co Bahrain Banks 22. Albaraka Turk Katilim Bankasi AS Turkey Banks 23. Albrook Leasing Co Inc Panama Consumer finance 24. Alta Bank CJSC Ukraine Banks 25. Alta Finance Holding PLC Bulgaria Financial services 26. Alfa-Bank AO Russia Banks 27. Alfa-Bank CJSC/Belarus Belarus Banks 28. Alfakredyt Sp zoo Poland Financial services 29. Aliado Factoring SA Panama Commercial finance 30. Aliado Leasing SA Panama Commercial finance 31. Alliance Global Group Inc Philippines Financial services 32. Almacenaje Seco y Frio SA Panama Financial services 33. Alpha Bank Romania SA Romania Banks 34. Alpha Holding SA Mexico Commercial finance 35. Alternatifbank AS Turkey Banks Sources: Bloomberg Finance L.P.; IFC analysis. 62 Financial Institution (FI) Issuer No. Name—EM ex-China Country Type 36. AmBank M Bhd Malaysia Banks 37. Ameriabank CJSC Armenia Banks 38. Amerika Financiera SA Peru Financial services 39. Amira International Finance BV United Arab Emirates Financial services 40. Anolis Capital Markets PCC Mauritius Financial services 41. ANSA Merchant Bank Ltd Trinidad and Tobago Banks 42. Arab Banking Corp BSC Bahrain Financial services 43. Araratbank OJSC Armenia Banks 44. Archers Capital Participacoes e Investimentos SA Brazil Financial services 45. Ardshinbank CJSC Armenia Banks 46. Armbusinessbank ZAO Armenia Banks 47. Armeconombank OJSC Armenia Banks 48. ArmSwissBank CJSC Armenia Banks 49. Arpeni Pratama Ocean Line Investment BV Indonesia Financial services 50. Arrow Capital Corp Panama Financial services 51. Asian Pacific Bank Russia Banks 52. Astana-Finance JSC Kazakhstan Commercial finance 53. Astra Sedaya Finance PT Indonesia Consumer finance 54. Asya Sukuk Co Ltd Turkey Banks 55. Avanti Products sro Czech Republic Financial services 56. Axis Bank Ltd India Banks 57. Azion Bao Pte Ltd Indonesia Financial services 58. B&N Bank JSC Russia Banks 59. B3 SA - Brasil Bolsa Balcao Brazil Financial services 60. BAC International Bank Inc Panama Banks 61. BAC San Jose SA Costa Rica Banks 62. BACS Banco de Credito y Securitizacion SA Argentina Banks 63. Bahrain Mumtalakat Holding Co BSC Bahrain Financial services 64. Baltic Horizon Fund Estonia Funds & trusts 65. Banca Comerciala Romana SA Romania Banks 66. Banca Mitel SA Mexico Banks 67. Banca Transilvania SA Romania Banks 68. Banco ABC Brasil SA Brazil Banks 69. Banco Agricola SA El Salvador Banks 70. Banco Agromercantil de Guatemala SA Guatemala Banks 71. Banco Aliado SA Panama Banks 72. Banco Amambay SA Paraguay Banks 73. Banco Atlas SA Paraguay Banks 74. Banco BBVA Peru SA Peru Banks 75. Banco BCT SA Costa Rica Banks 76. Banco BICE Chile Banks 77. Banco Bilbao Vizcaya Argentaria Colombia Banks Colombia SA 78. Banco Bilbao Vizcaya Argentaria Paraguay SA Paraguay Banks 63 Financial Institution (FI) Issuer No. Name—EM ex-China Country Type 79. Banco Bilbao Vizcaya Argentaria Uruguay SA Uruguay Banks 80. Banco BMG SA Brazil Banks 81. Banco Bradesco SA Brazil Banks 82. Banco BS2 SA Brazil Banks 83. Banco BTG Pactual SA Brazil Banks 84. Banco Continental SAECA Paraguay Banks 85. Banco Cruzeiro do Sul SA Brazil Banks 86. Banco Davivienda Costa Rica SA Costa Rica Banks 87. Banco Davivienda SA Colombia Banks 88. Banco Daycoval SA Brazil Banks 89. Banco de Bogota SA Colombia Banks 90. Banco de Chile Chile Banks 91. Banco de Costa Rica Costa Rica Banks 92. Banco de Credito del Peru Peru Banks 93. Banco de Credito e Inversiones SA Chile Banks 94. Banco de Desarrollo del Ecuador BP Ecuador Banks 95. Banco de Galicia y Buenos Aires SA Argentina Banks 96. Banco de la Produccion SA Ecuador Banks 97. Banco de la Provincia de Cordoba SA Argentina Banks 98. Banco de los Trabajadores Guatemala Banks 99. Banco de Reservas de la Republica Dominicana Dominican Republic Banks 100. Banco Del Estado De Chile Chile Banks 101. Banco Delta SA BMF Panama Banks 102. Banco do Brasil SA Brazil Banks 103. Banco do Estado do Rio Grande do Sul SA Brazil Banks 104. Banco do Nordeste do Brasil SA Brazil Banks 105. Banco Economico S.A. Bolivia Banks 106. Banco Falabella Peru SA Peru Banks 107. Banco Fibra SA Brazil Banks 108. Banco General SA Panama Banks 109. Banco Gerador SA Brazil Banks 110. Banco GNB Peru SA Peru Banks 111. Banco GNB Sudameris SA Colombia Banks 112. Banco Hipotecario SA Argentina Banks 113. Banco Inbursa SA Mexico Banks 114. Banco Industrial do Brasil S/A Brazil Banks 115. Banco Industrial SA Guatemala Banks 116. Banco Interamericano de Finanzas SA Peru Banks 117. Banco International de Costa Rica SA/Panama Panama Banks 118. Banco International del Peru SAA Interbank Peru Banks 119. Banco Itau Argentina SA Argentina Banks 120. Banco Itau Paraguay SA Paraguay Banks 121. Banco La Hipotecaria SA Panama Banks 122. Banco Lafise SA Costa Rica Banks 64 Financial Institution (FI) Issuer No. Name—EM ex-China Country Type 123. Banco Macro SA Argentina Banks 124. Banco Mercantil del Norte SA Mexico Banks 125. Banco Mercantil do Brasil SA Brazil Banks 126. Banco Mercantil Santa Cruz SA Bolivia Banks 127. Banco N acional de Bolivia SA Bolivia Banks 128. Banco National de Costa Rica Costa Rica Banks 129. Banco National de Desenvolvimento Economico e Social Brazil Banks 130. Banco National de Fomento Ecuador Banks 131. Banco Nacional de Panama Panama Banks 132. Banco Pan SA Brazil Banks 133. Banco Panama SA Panama Banks 134. Banco Panameno de la Vivienda SA Panama Banks 135. Banco Pichincha Peru Banks 136. Banco Popular y de Desarrollo Comunal Costa Rica Banks 137. Banco Popular y de Desarrollo Comunal/Panama Panama Banks 138. Banco Prival SA Panama Banks 139. Banco Promerica de Costa Rica SA Costa Rica Banks 140. Banco Regional SAECA Paraguay Banks 141. Banco Ripley Peru SA Peru Banks 142. Banco Safra SA Brazil Banks 143. Banco Santander Brasil SA Brazil Banks 144. Banco Santander Chile Chile Banks 145. Banco Santander Mexico SA Mexico Banks 146. Banco Santander Peru SA Peru Banks 147. Banco Security SA Chile Banks 148. Banco Sofisa SA Brazil Banks 149. Banco Votorantim SA Brazil Banks 150. Bancolombia SA Colombia Banks 151. Banesco SA Panama Banks 152. Bangkok Bank PCL Thailand Banks 153. Banistmo SA Panama Banks 154. Bank Audi SAL Lebanon Banks 155. Bank CenterCredit JSC Kazakhstan Banks 156. Bank China Construction Bank Indonesia Tbk PT Indonesia Banks 157. Bank Mandiri Persero Tbk PT Indonesia Banks 158. Bank Muscat SAOG Oman Banks 159. Bank Negara Indonesia Persero Tbk PT Indonesia Banks 160. Bank of Baku Azerbaijan Banks 161. Bank of Baroda India Banks 162. Bank of Ceylon Sri Lanka Banks 163. Bank of China Thai PCL Thailand Banks 164. Bank of Georgia JSC Georgia Banks 165. Bank of India India Banks 166. Bank of Sharjah United Arab Emirates Banks 65 Financial Institution (FI) Issuer No. Name—EM ex-China Country Type 167. Bank of the Philippine Islands Philippines Banks 168. Bank Otkritie Financial Corp OJSC Russia Banks 169. Bank Permata Tbk PT Indonesia Banks 170. Bank Pozitif Kredi ve Kalkinma Bankasi AS Turkey Banks 171. Bank Rakyat Indonesia Persero Tbk PT Indonesia Banks 172. Bank St Petersburg OJSC Russia Banks 173. Bank Uralsib OJSC Russia Banks 174. Bank Vontobel AG United Arab Emirates Banks 175. Bankas Snoras AB Lithuania Banks 176. BankMed SAL Lebanon Banks 177. Banque BEMO Sal Lebanon Banks 178. Banque Saudi Fransi Saudi Arabia Banks 179. Bayport Management Ltd Mauritius Financial services 180. BBK BSC Bahrain Banks 181. BBVA Bancomer SA Mexico Banks 182. BBVA Leasing Mexico SA Mexico Commercial finance 183. BCS Finance One BV Russia Financial services 184. BDO Unibank Inc Philippines Banks 185. Belagroprombank OAO Belarus Banks 186. Belarusbank Belarus Banks 187. Belarusian Bank of Development and Reconstruction Belarus Banks 188. Belarussian Industrial Bank OJSC Belarus Banks 189. Belgazprombank JSC Belarus Banks 190. BFF Polska SA Poland Commercial finance 191. Bhira Investments Pte Ltd India Financial services 192. BISA Leasing SA Bolivia Commercial finance 193. BLOM Bank SAL Lebanon Banks 194. BLT International Corp Indonesia Financial services 195. BMCE Bank Morocco Banks 196. BnP Finance AB Lithuania Consumer finance 197. BPS-Sberbank OJSC Belarus Banks 198. BTA Bank JSC Kazakhstan Banks 199. Bulgarian American Credit Bank JSCO Bulgaria Banks 200. Business Alliance Russia Commercial finance 201. Byblos Bank SAL Lebanon Banks 202. CACAO JEP Ltd Jamaica Financial services 203. Cagamas Global PLC Malaysia Consumer finance 204. Cahaya Capital Ltd Malaysia Financial services 205. Caixa Economica Federal Brazil Banks 206. Calik Holding AS Turkey Financial services 207. Canara Bank India Banks 208. Canopus International Ltd Thailand Financial services 209. Capital Bank Inc Panama Banks 210. Capital Bank of Jordan Jordan Banks 66 Financial Institution (FI) Issuer No. Name—EM ex-China Country Type 211. Casa Rural SA Paraguay Financial services 212. CB First Investment Bank AD Bulgaria Banks 213. CBZ Holdings Ltd Zimbabwe Banks 214. Central Cooperative Bank AD Bulgaria Banks 215. Ceskoslovenska Obchodni Banka as Czech Republic Banks 216. CFR International SpA Chile Financial services 217. CGM Leasing Argentina SA Argentina Commercial finance 218. China Construction Bank Brasil Banco Multiplo SA Brazil Banks 219. Cia Financiera Argentina SA Argentina Consumer finance 220. CIB Bank zrt Hungary Banks 221. CIBanco SA Institucion de Banca Multiple Mexico Financial services 222. Cielo SA Brazil Consumer finance 223. CIMB Bank Bhd Malaysia Banks 224. Cindai Capital Ltd Malaysia Financial services 225. Cognor International Finance PLC Poland Commercial finance 226. Colfnanzas SA Panama Financial services 227. Commercial Bank of Dubai PSC United Arab Emirates Banks 228. Continental Sociedad Titulizadora SA Peru Financial services 229. Converse Bank Armenia Banks 230. Corp Bella Vista de Finanzas SA Panama Consumer finance 231. Corp De Finanzas De Pais Panama Consumer finance 232. Corp Financiera Colombiana SA Colombia Banks 233. Corp Financiera Nacional-CFN Ecuador Banks 234. Corp Group Banking SA Chile Banks 235. Corp Interamericana para el Financiamiento de Infraestructura SA Panama Consumer finance 236. Corporate Commercial Bank AD Bulgaria Banks 237. CPI Finance Slovakia AS Czech Republic Financial services 238. Creamfnance Poland Sp zoo Poland Consumer finance 239. Credexbank CJSC Belarus Banks 240. Credicorp Bank SA Panama Banks 241. Credicorp Capital Sociedad Titulizadora SA Peru Financial services 242. Credit Bank of Moscow Russia Banks 243. Credit Europe Bank Ltd Russia Banks 244. Credit Europe Bank NV Turkey Banks 245. Credit Libanais SAL Lebanon Banks 246. Credito Real SAB Mexico Consumer finance 247. Creditstar International OU Estonia Consumer finance 248. Credivalores-Crediservicios SAS Colombia Consumer finance 249. Delta Investment Horizon International Ltd Indonesia Financial services 250. Development Bank of Kazakhstan JSC Kazakhstan Banks 251. DFCC Bank PLC Sri Lanka Banks 252. Diamond Bank PLC Nigeria Banks 253. Docuformas SAPI Mexico Commercial finance 254. Dubai Aerospace Enterprise DAE Ltd United Arab Emirates Commercial finance 67 Financial Institution (FI) Issuer No. Name—EM ex-China Country Type 255. Dubai Investment Park United Arab Emirates Financial services 256. Dynamica Controladora Empresarial SA de CV Mexico Financial services 257. EBI SA Ghana Banks 258. ECO Futuro SA Bolivia Financial services 259. Ecobank Nigeria Ltd Nigeria Banks 260. Ecobank Transnational Inc Togo Banks 261. El Pacifco Peruano-Suiza Cia de Seguros y Reaseguros Peru Life insurance 262. Elana Holding AD Bulgaria Commercial finance 263. Emirates NBD PJSC United Arab Emirates Banks 264. Empresa Administradora de Aeropuertos Internacionales Nicaragua Financial services 265. Emraxbank Azerbaijan Banks 266. EPG Factoring SRO Czech Republic Financial services 267. EPH Financing SK as Czech Republic Financial services 268. Equisar International Inc Malaysia Financial services 269. Erste&Steiermaerkische Banka dd Croatia Banks 270. Eurasian Bank JSC Kazakhstan Banks 271. Eurohold Bulgaria AD Bulgaria Financial services 272. Eurolease Auto EAD Bulgaria Commercial finance 273. Euromayor SA de Inversiones Argentina Financial services 274. Exelor Ltd Russia Financial services 275. Expobank LLC Russia Banks 276. FairPlay Properties REIT Bulgaria Consumer finance 277. Fast Credit Capital UCO CJSC Armenia Financial services 278. Federal International Finance PT Indonesia Consumer finance 279. Fibabanka AS Turkey Banks 280. Fideicomiso de Credito Banco General Costa Rica Panama Financial services 281. Fideicomiso PA Costera Colombia Financial services 282. Fidelity Bank PLC Nigeria Banks 283. Finance & Credit Bank Ukraine Banks 284. Finance Direct AD Bulgaria Financial services 285. FINANCIA CREDIT SA Panama Financial services 286. Financiera Cash Solution Corp Panama Financial services 287. Financiera Desyfin SA Costa Rica Commercial finance 288. Financiera Familiar SA Panama Commercial finance 289. Financiera Finacredit SA Panama Consumer finance 290. Financiera Independencia SAB Mexico Consumer finance 291. Financiera Pacifco Internacional SA Panama Consumer finance 292. Financiera Rio SA Paraguay Banks 293. Finanzas Generales SA Panama Financial services 294. Finanzas y Creditos Del Hogar SA Financiera LA Generosa Panama Commercial finance 295. Finca Uco Cjsc Armenia Commercial finance 296. FinStandart LLC/RU Russia Financial services 297. First Abu Dhabi Bank PJSC United Arab Emirates Banks 298. First Bank of Nigeria Ltd Nigeria Banks 68 Financial Institution (FI) Issuer No. Name—EM ex-China Country Type 299. First Citizens Bank Ltd Trinidad and Tobago Banks 300. First Factoring Inc Panama Financial services 301. First Mortgage Co Universal Credit Organization LLC Armenia Banks 302. FirstRand Bank Ltd South Africa Banks 303. Fomenta MX SA de CV SOFOM ENR Mexico Financial services 304. Fondo Financiero Privado Fassil SA Bolivia Banks 305. ForteBank JSC Kazakhstan Banks 306. Gazprombank OJSC Russia Banks 307. Georgia Capital JSC Georgia Financial services 308. Georgian Leasing Co LLC Georgia Commercial finance 309. GetBucks Invest GmbH South Africa Consumer finance 310. GetBucks Microfnance Bank Ltd Zimbabwe Consumer finance 311. Ghana Home Loans Co Ltd Ghana Consumer finance 312. Gilex Holding Sarl Colombia Banks 313. Global Bank Corp Panama Banks 314. GLOBAL CREDIT UCO CJSC Armenia Consumer finance 315. Goldman and Partners Ltd Russia Financial services 316. GPB Finance PLC Russia Financial services 317. Granville SA Argentina Consumer finance 318. Grupo Cohen SA Argentina Financial services 319. Grupo de Inversiones Suramericana SA Colombia Financial services 320. Grupo Elektra SAB Mexico Banks 321. Grupo Financiero Galicia SA Argentina Banks 322. Grupo Mutual Alajuela La Vivienda Costa Rica Financial services 323. Grupo Q Costa Rica SA de CV Costa Rica Financial services 324. Grupo Supervielle SA Argentina Banks 325. Gtlk Europe Capital DAC Russia Financial services 326. GTLK Europe DAC Russia Commercial finance 327. Guaranty Trust Bank PLC Nigeria Banks 328. Gulf International Bank BSC Bahrain Banks 329. Haitong Banco de Investimento do Brasil SA Brazil Banks 330. Halyk Savings Bank of Kazakhstan JSC Kazakhstan Banks 331. HDFC Bank Ltd India Banks 332. Hipotecaria Metrocredit SA Panama Financial services 333. Hipotecaria Su Casita SA de CV Mexico Consumer finance 334. Hipotekarna Banka AD Podgorica Montenegro Banks 335. Home Credit & Finance Bank OOO Russia Banks 336. Hong Leong Bank Bhd Malaysia Banks 337. HSBC Bank Middle East Ltd United Arab Emirates Banks 338. HSBC Mexico SA Mexico Banks 339. IBK DPR Securitizadora Peru Financial services 340. ICBC Peru Bank SA Peru Banks 341. ICICI Bank Ltd India Banks 342. IDBank CJSC Armenia Banks 69 Financial Institution (FI) Issuer No. Name—EM ex-China Country Type 343. IDBI Bank Ltd India Banks 344. IHS Towers Netherlands FinCo NG BV Nigeria Financial services 345. Indesa Capital Inc Panama Financial services 346. India Debt Opportunities Fund Ltd India Funds & trusts 347. Indiabulls Housing Finance Ltd India Consumer finance 348. Indian Bank India Banks 349. Indian Overseas Bank India Banks 350. IndusInd Bank Ltd India Banks 351. Inecobank CJSC Armenia Banks 352. Infrastructure Development Bank of Zimbabwe Zimbabwe Banks 353. Inmobiliaria Cervello SA Panama Consumer finance 354. InRetail Real Estate Corp Peru Funds & trusts 355. Intellect Lending Group Ltd Hungary Financial services 356. InterCard Finance AD Bulgaria Financial services 357. Intercorp Peru Ltd Peru Financial services 358. International Bank of Azerbaijan OJSC Azerbaijan Banks 359. International Industrial Bank JSC Russia Banks 360. Inversiones Atlantida SA Honduras Banks 361. Inversiones CorpGroup Interhold Ltd Chile Life insurance 362. Inversiones GASA Ltd Chile Financial services 363. Inversiones Sams SpA Chile Life insurance 364. Inversiones Terraluna SA Panama Financial services 365. Inversiones Terraluz SA Panama Financial services 366. Investcorp SA Bahrain Financial services 367. Investec Bank Ltd South Africa Banks 368. Investment Finance Opportunities Ltd Lebanon Financial services 369. IOST Co Ltd Mauritius Financial services 370. Istrokapital CZ AS Czech Republic Financial services 371. ITAU CorpBanca Chile Banks 372. Itau Unibanco Holding SA Brazil Banks 373. J&T Finance Group SE Czech Republic Financial services 374. Kasikornbank PCL Thailand Banks 375. Kaspi Bank JSC Kazakhstan Banks 376. Kovser Bank ASC Azerbaijan Banks 377. KRUK SA Poland Financial services 378. Krung Thai Bank PCL Thailand Banks 379. KT Turkey Sukuk Ltd Turkey Commercial finance 380. Kuveyt Turk Katilim Bankasi AS Turkey Banks 381. La Generosa SA Panama Financial services 382. Lancer Finance Co SPV Ltd Brazil Financial services 383. Land Bank ofthe Philippines Philippines Banks 384. Leasing Total SA Peru Commercial finance 385. LHV Group AS Estonia Banks 386. Line One Peru Metro Expansion Co Ltd Peru Commercial finance 70 Financial Institution (FI) Issuer No. Name—EM ex-China Country Type 387. Linklease Finance PLC United Arab Emirates Financial services 388. Luminor Bank AS/Estonia Estonia Banks 389. LW Master ABL Trust Mexico Financial services 390. Mainer Investment Ltd Russia Financial services 391. Malayan Banking Bhd Malaysia Banks 392. Mashreqbank PSC United Arab Emirates Banks 393. Massa Falida Do Banco BVA SA Brazil Banks 394. Matone Investimentos SA/Brazil Brazil Financial services 395. mBank SA Poland Banks 396. MCB Structured Solutions Ltd Mauritius Financial services 397. MDC-GMTN Cooperatief UA United Arab Emirates Financial services 398. Medicinos Bankas UAB Lithuania Banks 399. Memorial Funer Asesora de Servicios Funerarios SA Ecuador Financial services 400. Mercantile Investment Corp Bolivia SA Bolivia Financial services 401. Mestenio Ltd for Dominican Republic Dominican Republic Financial services 402. Metro Country Club SA Dominican Republic Financial services 403. Metro Leasing SA Panama Commercial finance 404. MHC Holdings Ltd Panama Financial services 405. MiFinanciera Nacional SA Panama Banks 406. Mongolian Mortgage Corp Hfc LLC Mongolia Consumer finance 407. Mubadala GE Capital Ltd United Arab Emirates Commercial finance 408. Muganbank OJSC Azerbaijan Banks 409. Multi Financiamientos SA Panama Consumer finance 410. Multibank Inc Panama Banks 411. Multileasing Financiero SA Panama Commercial finance 412. Mumtalakat Sukuk Holding Co Bahrain Financial services 413. Mutual Cartago de Ahorro y Prestamo Costa Rica Financial services 414. MyBucks SA South Africa Financial services 415. National Bank of Oman S AOG Oman Banks 416. National Bank of Ras Al-Khaimah PJSC United Arab Emirates Banks 417. National Bank Trust PJSC Russia Banks 418. National Commercial Bank Jamaica Ltd Jamaica Banks 419. National Investment Bank/Egypt Egypt Banks 420. National Savings Bank Sri Lanka Banks 421. Nedbank Ltd South Africa Banks 422. Nexo Emprendimientos SA Argentina Consumer finance 423. Nile Finance Ltd Egypt Banks 424. Noor Investment Group LLC United Arab Emirates Financial services 425. Nurol Y atirim Bankasi AS Turkey Banks 426. Nutritek International Corp Russia Financial services 427. Odea Bank AS Turkey Banks 428. Omni SA Credito Financiamento e Investimento Brazil Financial services 429. OTP Bank Nyrt Hungary Banks 430. OTP Mortgage Bank Ltd Hungary Banks 71 Financial Institution (FI) Issuer No. Name—EM ex-China Country Type 431. Pakuwon Jati Tbk PT Indonesia Financial services 432. Parana Banco SA Brazil Banks 433. Paritetbank OJSC Belarus Banks 434. Pekao Bank Hipoteczny SA Poland Consumer finance 435. PetroVietnam Finance JSC Vietnam Financial services 436. Philippine National Bank Philippines Banks 437. Pontis II Ltd Brazil Financial services 438. Pontis IV Ltd Brazil Financial services 439. Power Finance Corp Ltd India Commercial finance 440. Power Sector Assets & Liabilities Management Corp Philippines Financial services 441. Powszechna Kasa Oszczednosci Bank Polski SA Poland Banks 442. PPF Banka AS Czech Republic Banks 443. PPH Eliska as Czech Republic Financial services 444. PPLA Investments LP Brazil Financial services 445. Prestaciones Finmart SAPI de CV SOFOM ENR Mexico Banks 446. Priorbank JSC Belarus Banks 447. Prival Finance SA Panama Financial services 448. Privatbank CJSC Ukraine Banks 449. Probusinessbank OAO Russia Banks 450. Promerica Financial Corp Panama Banks 451. Promsvyazbank Russia Banks 452. Puente Hnos MAE SA Argentina Financial services 453. Pulai Capital Ltd Malaysia Financial services 454. QNB Finansbank AS Turkey Banks 455. Rabobank Chile Chile Banks 456. Raiffeisen Bank zrt Hungary Banks 457. Raiffeisenbank AO Russia Banks 458. Raiffeisenbank AS Czech Republic Banks 459. Real Estate Investment Thrust Inc Panama Financial services 460. REC Ltd India Commercial finance 461. Red Espanola de servicios SA United Arab Emirates Financial services 462. Renaissance Capital Holdings Ltd Russia Financial services 463. Renaissance Credit LLC Russia Financial services 464. Renaissance Securities Trading Ltd Russia Financial services 465. Rerum Finance s.r.o. Czech Republic Financial services 466. Reserve Capital Bulgaria Financial services 467. Residual Debt Services Ltd South Africa Banks 468. RHB Bank Bhd Malaysia Banks 469. Ritzio International Ltd Russia Financial services 470. Rizal Commercial Banking Corp Philippines Banks 471. Royalbank of Baku Azerbaijan Banks 472. RSRE Invest AS Czech Republic Financial services 473. Runtuna SA Uruguay Financial services 474. Russian Agricultural Bank OJSC Russia Banks 72 Financial Institution (FI) Issuer No. Name—EM ex-China Country Type 475. Russian Standard Bank ZAO Russia Banks 476. Sagicor Investments Jamaica Ltd Jamaica Banks 477. Santander Bank Polska SA Poland Banks 478. Sarana Multi Infrastruktur Persero PT Indonesia Commercial finance 479. Saudi British Bank Saudi Arabia Banks 480. Sberbank of Russia PJSC Russia Banks 481. SBM Holdings Ltd Mauritius Banks 482. Scotiabank de Costa Rica SA Costa Rica Banks 483. Scotiabank El Salvador SA El Salvador Banks 484. Scotiabank Peru SAA Peru Banks 485. SEB Bankas AB Lithuania Banks 486. Security Bank Corp Philippines Banks 487. Sekerbank Turk AS Turkey Banks 488. SENAAT United Arab Emirates Financial services 489. Senovazne PPH Czech Republic Financial services 490. Servivios Financieros Panama SA Panama Consumer finance 491. SF Holdings Co PLC Russia Commercial finance 492. SGFP Mexico SA Mexico Financial services 493. Sharjah Islamic Bank United Arab Emirates Banks 494. Shelby Noble Investments SA Panama Financial services 495. Shriram Transport Finance Co Ltd India Commercial finance 496. Siam Commercial Bank PCL Thailand Banks 497. Siauliu Bankas AB Lithuania Banks 498. Sila Holding AD Bulgaria Financial services 499. Singularity Africa PCC Rwanda Financial services 500. Sociedad de Inversiones Oro Blanco SA Chile Financial services 501. Sofa Commerce-Pawn Brokerage AD Bulgaria Banks 502. Soroa SA Ecuador Financial services 503. Sovcombank PJSC Russia Banks 504. Sphynx Capital Markets PCC Mauritius Financial services 505. SSG Resources Ltd Malaysia Financial services 506. St Georges Bank & Co Inc Panama Banks 507. Standard Bank Group Ltd South Africa Banks 508. Star Group Investments SA Panama Consumer finance 509. State Bank of India India Banks 510. State Savings Bank of Ukraine Ukraine Banks 511. State Transport Leasing Co OJSC Russia Commercial finance 512. Steponkus & Co FM AB Lithuania Financial services 513. Strategic Investors Group Inc Panama Banks 514. Sudameris Bank SAECA Paraguay Banks 515. Sudostroitelny Bank Russia Banks 516. SURA Asset Management SA Colombia Financial services 517. Syndicate Bank India Banks 518. Takarek Mortgage Bank Co PLC Hungary Consumer finance 73 Financial Institution (FI) Issuer No. Name—EM ex-China Country Type 519. Tamweel Funding III Ltd United Arab Emirates Consumer finance 520. Tanner Servicios Financieros SA Chile Financial services 521. Tarjeta N aranja S A Argentina Consumer finance 522. Tarshop SA Argentina Consumer finance 523. Tatfondbank PJSC Russia Banks 524. TBC Bank Group PLC Georgia Banks 525. TC Ziraat Bankasi AS Turkey Banks 526. TF Varlik Kiralama AS Turkey Banks 527. The Dubai Islamic Bank United Arab Emirates Banks 528. The Ural Bank for Reconstruction and Development Russia Banks 529. TIB Holdings Russia Financial services 530. Tifa Finance Tbk PT Indonesia Commercial finance 531. Tinkoff Bank JSC Russia Banks 532. TMB Bank PCL Thailand Banks 533. Tower Corp Panama Banks 534. Towerbank International Inc Panama Banks 535. Trade & Development Bank of Mongolia LLC Mongolia Banks 536. Transinvestment SPV-Sofia Bulgaria Financial services 537. Turk Ekonomi Bankasi AS Turkey Banks 538. Turkiye Garanti Bankasi AS Turkey Banks 539. Turkiye Halk Bankasi AS Turkey Banks 540. Turkiye Is Bankasi AS Turkey Banks 541. Turkiye Sinai Kalkinma Bankasi AS Turkey Banks 542. Turkiye Vakifar Bankasi TAO Turkey Banks 543. UHR Development Inc Panama Financial services 544. Ukio Bankas Lithuania Banks 545. UMG Finance BV Russia Financial services 546. Unibank Commercial Bank OJSC Azerbaijan Banks 547. Unibank OJSC Armenia Banks 548. UniCredit Bank Czech Republic & Czech Republic Banks Slovakia AS 549. UniCredit Jelzalogbank Zrt Hungary Consumer finance 550. Unifin Financiera SAB Mexico Commercial finance 551. Unigel Luxembourg SA Brazil Financial services 552. UniLeasing Inc Panama Banks 553. Union Bank of India India Banks 554. Union Bank of the Philippines Philippines Banks 555. Union National Bank PJSC United Arab Emirates Banks 556. United Bank for Africa PLC Nigeria Banks 557. United Overseas Bank Thai PCL Thailand Banks 558. UPP & Co Kauno 53 OU Estonia Financial services 559. VEB-Leasing OAO Russia Commercial finance 560. Vietnam Joint Stock Commercial Bank fcr Industry and Trade Vietnam Banks 561. VIG Fund AS Czech Republic Financial services 74 Financial Institution (FI) Issuer No. Name—EM ex-China Country Type 562. Visa Credit NBFI LLC Azerbaijan Financial services 563. Vision Banco SAEC A Paraguay Banks 564. Vneshprombank Ltd Russia Banks 565. VTB Bank Belarus CJSC Belarus Banks 566. VTB Bank PJSC Russia Banks 567. VTB Leasing Ukraine Ukraine Commercial finance 568. Waha Aerospace BV United Arab Emirates Financial services 569. Web Finance Holding AD Bulgaria Financial services 570. Wema Bank PLC Nigeria Banks 571. Wuestenrot hypotecni banka AS Czech Republic Banks 572. Xaures Securitisation Fund Ecuador Financial services 573. Yapi Kredi Bank Azerbaijan CJSC Azerbaijan Banks 574. Yapi ve Kredi Bankasi AS Turkey Banks 575. Yes Bank Ltd India Banks 576. Zenith Bank PLC Nigeria Banks 577. Zepter Bank CJSC Belarus Banks 578. ZETLAND Russia Consumer finance Financial Institution (FI) No. Issuer Name—China Country Type 1. Advance Wisdom Investments Ltd China Financial services 2. Agricultural Bank of China Ltd China Banks 3. AIA Group Ltd China Life insurance 4. Aircraft Finance Co Ltd China Commercial finance 5. Airvessel Finance Holding Ltd China Commercial finance 6. Amipeace Ltd China Financial services 7. AMTD Group Co Ltd China Financial services 8. Asia View Ltd China Financial services 9. AVIC International Leasing Co Ltd China Commercial finance 10. Bagan Capital Ltd China Financial services 11. Bank of China Ltd China Banks 12. Bank of Communications Co Ltd China Banks 13. Bank of East Asia Ltd China Banks 14. Bank of Shanghai Co Ltd China Banks 15. Bank of Taiwan China Banks 16. Bank Sinopac China Banks 17. Baosteel Hong Kong Investment Co Ltd China Financial services 18. Beijing Capital Hong Kong Ltd China Financial services 19. Beijing State-Owned Assets Management Hong Kong Co Ltd China Financial services 20. Bendura Bank AG China Banks 21. Big Right Investment Ltd China Financial services 22. Big Will Investments Ltd China Financial services 23. Billion Express Investments Ltd China Financial services 24. BL Capital Holdings Ltd China Financial services 75 Financial Institution (FI) No. Issuer Name—China Country Type 25. Black Peony Hong Kong Holding Co Ltd China Financial services 26. Blu Horizon Ltd China Commercial finance 27. Boom Up Investments Ltd China Financial services 28. Bright Galaxy International Ltd China Financial services 29. Cathay Financial Holding Co Ltd China Life insurance 30. Century Master Investment Co Ltd China Financial services 31. Chang Hwa Commercial Bank Ltd China Banks 32. Changde Urban Construction Investment Group Co Ltd China Financial services 33. Charming Light Investments Ltd China Financial services 34. Chengdu Dongfang Guangyi Investment Co Ltd China Financial services 35. Chengdu Hi-tech Investment Group Co Ltd China Financial services 36. China Aircraft Leasing Group Holdings Ltd China Commercial finance 37. China Car Funding Investment 2014 China Financial services 38. China Chengtong Holdings Group Ltd China Financial services 39. China Cinda Asset Management Co Ltd China Financial services 40. China CITIC Bank Corp Ltd China Banks 41. China Construction Bank Corp China Banks 42. China Development Bank China Banks 43. China Everbright Bank Co Ltd China Banks 44. China Financial services Holdings Ltd China Consumer finance 45. China Great Wall International Holdings Ltd China Financial services 46. China Huadian Overseas Development 2018 Ltd China Financial services 47. China Huarong Asset Management Corporation China Financial services 48. China International Capital Corporation Ltd China Banks 49. China Life insurance Group China Life insurance 50. China Merchants Bank Co Ltd China Banks 51. China Minsheng Banking Corp Ltd China Banks 52. China Overseas Holdings Ltd China Financial services 53. China Shandong Hi-Speed Financial Group Ltd China Commercial finance 54. China Smartpay Group Holdings Ltd China Consumer finance 55. China Taiping China Life insurance 56. Chong Hing Bank Ltd China Banks 57. Chongqing Casin Group Co Ltd China Financial services 58. Cisi Investment Ltd China Financial services 59. CITIC Group China Banks 60. CITIC Securities Co Ltd China Financial services 61. CITIC Trust Co Ltd China Financial services 62. CM International Financial Leasing Investment Holding Ltd China Commercial finance 63. Coastal Emerald Ltd China Financial services 64. Cosco Pacific Ltd. China Financial services 65. Crotona Assets Ltd China Financial services 66. CSC Financial Co Ltd China Financial services 67. CTBC Bank Co Ltd China Banks 68. CWT International Ltd China Financial services 76 Financial Institution (FI) No. Issuer Name—China Country Type 69. Dah Sing Bank Ltd China Banks 70. DBS Bank Hong Kong Ltd China Banks 71. Dolomite Capital Ltd China Financial services 72. Dong Yin Development Holdings Ltd China Financial services 73. Dongxing Voyage Co Ltd China Financial services 74. Double Charm Ltd China Financial services 75. E.SUN Commercial Bank Ltd China Banks 76. Emperor Capital Group Ltd China Financial services 77. Everbright Sun Hung Kai Co Ltd China Financial services 78. Export Lease Eight Co Ltd China Financial services 79. Far East Horizon Ltd China Commercial finance 80. Far Eastern International Bank China Banks 81. First Commercial Bank Co Ltd China Banks 82. First FZ Bond Ltd China Financial services 83. FPC Capital Ltd China Financial services 84. Freeman FinTech Corp Ltd China Commercial finance 85. FTL Capital Ltd China Financial services 86. Fubon Financial Holding Co Ltd China Banks 87. Full Dragon Hong Kong International Development Ltd China Financial services 88. Fuqing Investment Management Ltd China Financial services 89. FWD Ltd China Life insurance 90. Gansu Province Electric Power Investment Group Co Ltd China Financial services 91. Gansu Provincial Highway Aviation Tourism Investment Group Co Ltd China Financial services 92. Gaoxin International Investment Co Ltd China Financial services 93. Geely Sweden Finance AB China Financial services 94. Gemdale Ever Prosperity Investment Ltd China Financial services 95. Giant Great Ltd China Financial services 96. Golden Concord Group Ltd China Financial services 97. Gorgeous Days Ltd China Financial services 98. GRAM International Ltd China Financial services 99. Guang Ying Investment Ltd China Financial services 100. Guangxi Communications Investment Group Co Ltd China Financial services 101. Guangxi Financial Investment Group Co Ltd China Commercial finance 102. GUANGZHOU Silk Road Investment Ltd China Financial services 103. Guohui International Bvi Co Ltd China Financial services 104. Guojing Capital BVI Ltd China Financial services 105. Guotai International Ltd China Financial services 106. Guotai Junan Securities Co Ltd China Financial services 107. Haitian BVI International Investment Development Ltd China Financial services 108. Haitong Securities Co Ltd China Financial services 109. Hang Seng Bank Ltd China Banks 110. Hangzhou Fuyang Chengtou Group HK Ltd China Financial services 111. Hengjian International Investment Ltd China Financial services 112. HFI International Hong Kong Ltd China Financial services 113. Hong Kong Exchanges & Clearing Ltd China Financial services 77 Financial Institution (FI) No. Issuer Name—China Country Type 114. Hongkong & Shanghai Banking Corp Ltd China Banks 115. Hontop Energy Singapore via China Wanda International Funding China Financial services 116. Horse Gallop Finance Ltd China Financial services 117. Huarong Universe Investment Holding Ltd China Financial services 118. Huasing International Holdings Co Ltd China Financial services 119. Huatai Securities China Financial services 120. Huaxia Bank Co Ltd China Banks 121. Huaxin Pharmaceutical Hong Kong Co Ltd China Financial services 122. Hubei Science & Technology Investment Group Hong Kong Ltd China Financial services 123. Industrial & Commercial Bank of China Ltd China Banks 124. Industrial Bank Co Ltd China Banks 125. Industrial Investment Overseas Ltd China Financial services 126. Inventive Global Investments Ltd China Financial services 127. Jiaozuo Investment Co Ltd China Financial services 128. JIC Zhixin Ltd China Financial services 129. Jingkai Investment Co Ltd China Financial services 130. Jinshine International Co Ltd China Financial services 131. Jiuding Group Finance Co Ltd China Financial services 132. Joy Treasure Assets Holdings Inc China Financial services 133. Junmao Ltd China Financial services 134. KDB Asia Ltd China Banks 135. KGI Bank China Banks 136. Kunming Traffic Investment Co Ltd China Financial services 137. Land Bank of Taiwan Co Ltd China Banks 138. Landmark Funding China Commercial finance 139. Legend Fortune Ltd China Financial services 140. Liang Shan International Development Ltd China Financial services 141. LR Capital Global Markets China Financial services 142. Lucky Assets Ltd China Financial services 143. Macrolink Global Development Ltd China Financial services 144. Mega International Commercial Bank Co Ltd China Banks 145. Mianyang Investment Holding Group Co Ltd China Financial services 146. Nan Fung International Holding Ltd China Financial services 147. Nanjing Jiangbei New Town International Investment China Financial services Development Corp Ltd 148. New Lion Bridge Co Ltd China Commercial finance 149. New Rose Investments Ltd China Financial services 150. Ocean Bright Capital Holdings Ltd China Financial services 151. Ocean Whale Funding Ltd China Commercial finance 152. Oceanwide Holdings International Development II Co Ltd China Financial services 153. Orient Securities Co Ltd China Financial services 154. Phoenix Charm International Investment Ltd China Financial services 155. Ping An Lite insurance Co of China Ltd China Life insurance 156. Pioneer Reward Ltd China Financial services 78 Financial Institution (FI) No. Issuer Name—China Country Type 157. Poseidon Finance 1 Ltd China Financial services 158. Public Bank Hong Kong Ltd China Banks 159. Qinghai Provincial Investment Group Co Ltd China Financial services 160. Qudian Inc China Consumer finance 161. Rongshi International Finance Ltd China Financial services 162. Rosy Delta Investments Ltd China Financial services 163. Rosy Unicorn Ltd China Financial services 164. Sany Hongkong Group Ltd China Financial services 165. SCIG International Financial Ltd China Financial services 166. Shandong Commercial Group Co Ltd China Financial services 167. Shanghai Commercial & Savings Bank Ltd/The China Banks 168. Shanghai Commercial Bank Ltd China Banks 169. Shanghai Pudong Development Bank Co Ltd China Banks 170. Shaoxing City Investment HK Ltd China Financial services 171. SIHC International Capital Ltd China Financial services 172. Silver Sparkle Ltd China Commercial finance 173. Sino Trendy Investment Ltd China Financial services 174. Soar Wise Ltd China Consumer finance 175. Southwest Securities International Securities Ltd China Financial services 176. Sparkling Capital Ltd China Financial services 177. Standard Chartered Bank Hong Kong Ltd China Banks 178. Standard Chartered Bank Taiwan Ltd China Banks 179. State Elite Global Ltd China Financial services 180. Sun Hung Kai & Co BVI Ltd China Consumer finance 181. Sunshine Lite insurance Corp Ltd China Life insurance 182. Suzhou Yingcai Investment Group Co Ltd China Financial services 183. Taikang Insurance Group Inc China Life insurance 184. Taipei Fubon Commercial Bank Co Ltd China Banks 185. Taishin International Bank China Banks 186. Taiwan Business Bank China Banks 187. Taiwan Cooperative Bank Ltd China Banks 188. Taizhou Oriental China Medical City Holding Group Co Ltd China Financial services 189. Tangshan International Investment Hong Kong Co Ltd China Financial services 190. Tianfang Jincheng China Financial services 191. TianJin Energy Investment Ltd China Financial services 192. Tieling Public Assets Investment and Management Group Co Ltd China Financial services 193. Unican Ltd China Commercial finance 194. Unigroup International Holdings Ltd China Financial services 195. Union Life insurance Co Ltd China Life insurance 196. Value Success International Ltd China Life insurance 197. VCredit Holdings Ltd China Consumer finance 198. Vertex Capital Investment Ltd China Financial services 199. Vigorous Champion International Ltd China Life insurance 200. Wansheng Tourism Development Singapore Pte Ltd China Financial services 79 Financial Institution (FI) No. Issuer Name—China Country Type 201. Wharf Finance No 1 Ltd China Financial services 202. Wheelock Finance Ltd China Financial services 203. Wisdom Marine Lines Co Ltd China Commercial finance 204. Wuhan Financial Holdings Group Co Ltd China Financial services 205. Wuyi Mountains Ltd China Financial services 206. Xi Yang Overseas Ltd China Financial services 207. Xiamen International Bank Co Ltd China Banks 208. Xin Fu BVI Co Ltd China Financial services 209. Xingsheng BVI Co Ltd China Commercial finance 210. Xinjiang Financial Investment Ltd China Financial services 211. Xinjiang Transportation Construction Investment Holding Co Ltd China Financial services 212. Yancheng High-tech Zone Investment Group Co Ltd China Financial services 213. Yieldking Investment Ltd China Financial services 214. Yihua Overseas Investment Ltd China Financial services 215. Yinchuan Tonglian Capital Investment Operation Co Ltd China Financial services 216. Yong Shing International Co Ltd China Financial services 217. Yuanta Securities Asia Financial services Ltd China Financial services 218. Yuanta Securities Co Ltd China Banks 219. Zhaojin Mining International Finance Ltd China Financial services 220. Zhongrong International Trust Co Ltd China Financial services 221. Zhongrui Industrial Group Ltd China Financial services 222. Zhongtai Financial International China Financial services 223. ZhongYuan Aviation Leasing Co Ltd China Commercial finance 224. Zhongyuan Sincere Investment Co Ltd China Financial services 225. Zhuji Development Ltd China Financial services 226. Zijin International Finance Co Ltd China Financial services 80 81 Contact Details Abbreviations and Acronyms Jean-Marie Masse AI Artificial intelligence BIS Bank of International Settlements jmasse@ifc.org CEMBI JP Morgan Corporate Emerging Market Bond Index Chief Investment Officer DM Developed market Financial Institutions Group EGO Fund Amundi Planet Emerging Green One Fund International Finance Corporation EM Emerging market E&S Environmental and social ESG Environmental, social and governance Haruko Koide ESMS Environmental and Social Management System FI Financial institution hkoide@ifc.org GB-TAP Green Bond Technical Assistance Program Senior Investment Officer GDP Gross domestic product Financial Institutions Group H1 First half International Finance Corporation ICMA International Capital Market Association IFC International Finance Corporation IMF International Monetary Fund NBFI Nonbank financial institution OECD Organisation for Economic Co-operation and Development RFP Request for proposal Sida Swedish International Development Cooperation Agency SECO Swiss State Secretariat for Economic Affairs SDG Sustainable Development Goals PHOTO CREDITS: Cover: Bangkok Page ii: Soonthorn Wongsaita/Shutterstock Page viii: 1000 Words/Shutterstock Page 30: Yudho W/Shutterstock Page 34: TZIDO SUN/Shutterstock Page 55: giSpate/Shutterstock Page 79: whiteMocca/Shutterstock Inside Back Cover: kiattisak wannasri/Shutterstock 82 Communication Department Contact IFC 2121 Pennsylvania Avenue, NW Washington, DC 20433 USA Egidio Germanetti EGermanetti@ifc.org ifc.org May 2020