Washington, D.C., October 6,
2020—IFC, a member of the World Bank Group, has issued its largest-ever
pound sterling benchmark bond, attracting strong investor demand and raising
1 billion pounds to support private sector recovery, and help sustain companies
and livelihoods in developing countries amid COVID-19.
The five-year bond, listed on
the London Stock Exchange, was heavily oversubscribed, with banks comprising
more than 50 percent of investors, central banks and official institutions
more than 20 percent, asset managers more than 19 per cent, and pension
funds/ institutional investors more than 9 per cent. The proceeds of the
bond will go to finance IFC investments in emerging markets.
John Gandolfo, IFC Vice President
and Treasurer said: “We are very happy to be back in the sterling market
with our most substantial British Pound trade. This bond issuance signifies
our effort to cater to pound sterling investors in support of private sector
development and preserving jobs—for an inclusive, resilient recovery
in the most challenging markets. The five-year bond was exceptionally well
received by investors with orders over 1.7 billion GBP.”
“Investors came from across
all regions, but the majority of the demand—66 per cent—came from UK-based
investors,” Gandolfo added.
The 1 billion-pound benchmark
marks IFC’s first sterling-denominated trade since February 2020, when
IFC issued a seven-year 350 million GBP bond.
Lead managers were Merrill Lynch
International, J.P. Morgan Securities plc, and Nomura International plc.
IFC Sterling Bond Terms
Issuer: IFC (International Finance
Amount: GBP 1 billion
Pricing date: 6 October, 2020
Settlement date: 13 October, 2020
Maturity date: 15 December, 2025
Issue price: 99.958%
Reoffer Yield: 0.258% semi-annual/ 0.257% annual
Listing: London Stock Exchange
Lead Managers: Merrill Lynch International, J.P. Morgan Securities plc,
and Nomura International plc.
Distribution by Geography (%)
Europe ex. UK (16.4%)
IFC—a member of the World
Bank Group—is the largest global development institution focused on the
private sector in emerging markets. We work in more than 100 countries,
using our capital, expertise, and influence to create markets and opportunities
in developing countries. In fiscal year 2020, we invested $22 billion in
private companies and financial institutions in developing countries, leveraging
the power of the private sector to end extreme poverty and boost shared
prosperity. For more information, visit www.ifc.org.