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
“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 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
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.
||International Finance Corporation (IFC)
||Aaa (stable) / AAA (stable) (Moody’s / S&P)
||July 9, 2020
||July 16, 2020
||July 16, 2025
||99.857% / 0.404% s.a.
||0.375% (semi-annual, 30/360)
|Re-offer vs. Mid-swaps
|Re-offer vs. Benchmark
||UST 0.25% due June 2025+ 13bp
||BofA Securities, J.P. Morgan, TD Securities,
Central Banks/Official Institutions 63%
Asia Pacific 54%
Europe, Middle East, Africa 29%
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.