European Bank for Reconstruction and Development (EBRD) and Daiwa Securities Group are planning an issue of EBRD microfinance bonds to support the development of micro and small enterprises (MSEs) in countries where EBRD has operations.

The inaugural issuance of EBRD’s microfinance bonds will be arranged by Daiwa Securities Capital Markets, the wholesale securities firm under Daiwa Securities Group, and distributed by Daiwa Securities to Japanese retail and institutional investors.

The funding will be raised under the EBRD’s Global Medium Term Note Program. Proceeds will support EBRD operations that fund financial institutions which provide microfinance to small businesses.

The EBRD provides private MSEs, which are not catered for by the formal financial sector. The EBRD expects to commit approximately EUR200m in microfinance loans each year.