"The International Finance Corporation (IFC), the World Bank's private-sector lender, said on Tuesday it will seek to raise $300 million through a bond issue targeted at Japanese investors to finance microfinance programs for the poor. It is the first time that the IFC will issue a bond to raise money to lend to commercially viable microfinance institutions which offer affordable small loans to the poor in developing countries.... Until now, IFC has used its own general resources for its microfinance operations...." [Reuters/Factiva]

Dow Jones adds that "... 'We are looking at other possibilities for microfinance financing elsewhere in the market and hope to be able to realize another transaction within a few months,' said IFC Treasurer and Vice President of Finance Nina Shapiro....

World Bank President Robert Zoellick recently said that the IFC will need more cash as the Bank tries to address the global credit crisis. The IFC 'faces a possible capital restraint' by around 2011 if it is to continue to met swelling demand, Zoellick said, adding that support for developing countries will be critical going forward as they see more growth...." [Dow Jones/Factiva]