27 September 2019

Capital market instruments to mobilize institutional investors to infrastructure and SME financing in Emerging Market Economies

Written by World Bank, International Monetary Fund, Organisation for Economic Co-operation and Development
Developed by The World Bank
27 September 2019

This report seeks to identify key capital markets instruments that can help mobilize institutional investors to infrastructure and small and medium enterprises (SME) financing in emerging market economies (EMEs) with the primary focus on fixed income instruments. For many EMEs the role that capital markets have in bridging the financing gap in strategic sectors is determined by their domestic institutional investor base, given its size and importance vis-à-vis other investors. So, fixed income instruments are likely to be a better fit for the appetite of a broader range of institutional investors in EMEs as they have the potential to deliver long cash flows with attractive yields.