Washington, Oct 4: The World Bank on Thursday said it would launch a $5 billion bond fund that will invest in a basket of currencies from emerging markets aimed at helping develop countries' domestic capital markets.
The Global Emerging Markets Local Currency Bond Fund, or Gemloc, is expected to be up and running by early next year and will initially invest in 15 to 20 emerging markets, World Bank officials told the sources.
The fund will invest in middle- to low-income markets that could include countries such as Brazil, Mexico, China, India, Poland, Hungary, Thailand and South Africa, the official said.
The fund will be managed by a private-sector fund manager who will chosen after a search that begins on Friday.
''It will provide greater liquidity and depth to local currency bond markets and offer investors a broad, diversified portfolio of local currency bonds,'' the International Finance Corp, the bank's private sector lender, said in a statement.