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IFC Launches USD Global Bond, Raising $2 Billion to Support Private Sector in Developing Countries Amid COVID-19 Health and Economic Crisis


In Washington, D.C.
Emma-Kate Symons

Phone: (202) 813-7561

E-mail: esymons@ifc.org


Washington D.C., July 9, 2020—IFC, a member of the World Bank Group, today issued a new US dollar global benchmark bond, raising $2 billion to support private sector enterprises in developing countries in the face of the global COVID-19 health and economic crisis.

The five-year benchmark bond was heavily oversubscribed with an order book of over $6 billion – making it IFC’s largest-ever orderbook. The robust investor response to IFC’s first global issuance of its new fiscal year underscores the priority with which IFC has established itself as a leader as the largest development institution focused exclusively on developing the private sector in emerging markets.


“Entrepreneurs, small business owners and citizens in developing countries have been deeply impacted by the COVID-19 global health crisis, and our new bond will support private industry in some of the world’s most hard-hit regions, bringing relief to citizens,” said IFC Vice President and Treasurer John Gandolfo.


“This $2 billion global bond will support our mission of poverty alleviation and shared prosperity, which are inextricably linked to the Sustainable Development Goals,” he said. “The orderbook of over $6 billion is IFC’s largest-ever and reflects the impressive quality and diversity of demand for IFC bonds, with global participation from over 130 accounts across the world.”


The bond pays a coupon of 0.375 percent, priced with a spread of +10 basis points to mid-swaps, equivalent to +13 basis points over the corresponding U.S. Treasury note of 0.25% due June 2025. BofA Securities, J.P. Morgan, TD Securities and Wells Fargo acted as joint bookrunners on this trade.

Central banks and other official institutions accounted for 63 percent of the orders, followed by banks at 26 percent. About 17 percent of orders came from investors in the Americas, 29 percent came from investors in Europe, Middle East and Africa, and 54 percent came from investors in Asia Pacific.


IFC has issued US dollar-denominated global bonds each year since 2000. In addition, IFC complements its public issuance by accessing a variety of different markets, such as Uridashi, private placements and thematic bonds, like green bonds to support climate-smart business, and social bonds, including for on-lending to women-owned enterprises or companies that incorporate vulnerable populations. IFC also issues local-currency bonds to develop local capital markets and fund local-currency investments and discount notes in U.S. dollars. All IFC bond issuances are rated triple-A by Standard & Poor’s and Moody’s.


Final Terms
Issuer International Finance Corporation (IFC)
Rating Aaa (stable) / AAA (stable) (Moody’s / S&P)
Issue Amount US$ 2,000,000,000
Pricing Date July 9, 2020
Settlement Date July 16, 2020
Maturity Date July 16, 2025
Re-Offer Price/Yield 99.857% / 0.404% s.a.
Coupon 0.375% (semi-annual, 30/360)
Re-offer vs. Mid-swaps +10bp
Re-offer vs. Benchmark UST 0.25% due June 2025+ 13bp
Joint Bookrunners BofA Securities, J.P. Morgan, TD Securities, Wells Fargo



Distribution Statistics

Investor Type        
               

Central Banks/Official Institutions          63%              

Banks          26%              

AM/Insurance          8%              


Geography

Asia Pacific         54%

Europe, Middle East, Africa          29%

Americas          17%


About IFC

IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities where they are needed most. In fiscal year 2019, we delivered more than $19 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit
www.ifc.org.

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