Scaling Local Currency Financing
for Infrastructure
World Bank Group Inititatives
The World Bank Group plays a leading role in advancing Local Currency Financing (LCF) to support sustainable infrastructure, financial resilience, and inclusive development across emerging markets and developing economies (EMDEs). Through a suite of financial products and technical advice and analysis to address infrastructure development challenges, the World Bank Group help countries find solutions to achieve sustainable and inclusive development.
World Bank Group LCF Initiatives
IBRD Treasury - LCF Solutions offers tailored LCF solutions to sovereign clients, including:
- Currency Conversion of IBRD Loans: Clients can convert disbursed loan amounts into local currency, locking in fixed interest rates and aligning debt service with domestic revenue streams.
- Market-Based Hedging Instruments: The Treasury provides access to swap markets and structured products to manage FX risk.
- Indicative Pricing and Transaction Support: Clients receive market quotes and guidance on available maturities across 25+ liquid currencies, including ZAR, MXN, INR, and PEN.
These services are designed to enhance fiscal sustainability and reduce exposure to currency volatility in infrastructure and investments.
IFC – Local Currency Syndications and Lending:
- Currency Conversion of IBRD Loans: Clients can convert disbursed loan amounts into local currency, locking in fixed interest rates and aligning debt service with domestic revenue streams.
- Market-Based Hedging Instruments: The Treasury provides access to swap markets and structured products to manage FX risk.
- Indicative Pricing and Transaction Support: Clients receive market quotes and guidance on available maturities across 25+ liquid currencies, including ZAR, MXN, INR, and PEN.
These services are designed to enhance fiscal sustainability and reduce exposure to currency volatility in infrastructure and investments.
IDA Private Sector Window – Local Currency Facility:
- Currency Conversion of IBRD Loans: Clients can convert disbursed loan amounts into local currency, locking in fixed interest rates and aligning debt service with domestic revenue streams.
- Market-Based Hedging Instruments: The Treasury provides access to swap markets and structured products to manage FX risk.
- Indicative Pricing and Transaction Support: Clients receive market quotes and guidance on available maturities across 25+ liquid currencies, including ZAR, MXN, INR, and PEN.
These services are designed to enhance fiscal sustainability and reduce exposure to currency volatility in infrastructure and investments.
Country-Level Engagements and Technical Assistance:
- Currency Conversion of IBRD Loans: Clients can convert disbursed loan amounts into local currency, locking in fixed interest rates and aligning debt service with domestic revenue streams.
- Market-Based Hedging Instruments: The Treasury provides access to swap markets and structured products to manage FX risk.
- Indicative Pricing and Transaction Support: Clients receive market quotes and guidance on available maturities across 25+ liquid currencies, including ZAR, MXN, INR, and PEN.
These services are designed to enhance fiscal sustainability and reduce exposure to currency volatility in infrastructure and investments.
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