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IFC Launches $100 million Sukuk to Support Private Sector Development


In Cairo:
Riham Mustafa
Phone: +20 2 2461-4230
E-mail: rmustafa@ifc.org

In Beijing:
Jing Yu
Phone: +86 10 5860 3098
E-mail: jyu1@ifc.org


Dubai, September 10, 2015—IFC, a member of the World Bank Group, announced today that it issued a $100 million trust certificates through a special purpose vehicle, IFC Sukuk Company, in an effort to spur growth in developing economies.  

The five-year Sukuk will support IFC’s developmental financing activities in the Middle East and North Africa (MENA), and other parts of the world. It will initially be listed on NASDAQ Dubai. An application has also been made to list the Sukuk on the London Stock Exchange. The transaction will be IFC’s second Sukuk issuance.

“We are pleased to be part of this landmark Sukuk issuance by IFC, which achieved the tightest pricing for a dollar-denominated Sukuk. The issuance supports the growth of the Islamic finance and Sukuk industry beyond its traditional borders,” said Ahsan Ali, Managing Director and Head of Islamic Origination at Standard Chartered Bank.

“As a non-Islamic multilateral, IFC’s Sukuk is expected to help deepen the Sukuk market in the countries of the Gulf Cooperation Council, sending a positive signal for the development of the Gulf region's markets," said Mouayed Makhlouf, IFC Director for the Middle East and North Africa.

Bahar Alsharif, IFC Deputy Treasurer, said: “This issuance will help meet the funding needs of our private-sector clients in the Middle East and globally. As a premium global issuer, IFC is keen to offer international and regional investors high-quality alternatives in Islamic financial markets.”
 
IFC, an AAA-rated global financial institution, carried out its first Islamic finance investment in 1995, supporting a leasing project in Pakistan. To date, IFC has approved about 28 Islamic financing transactions worth a total of $742 million.

IFC Sukuk Summary Terms and Conditions
Issuer: IFC Sukuk Company
Obligor: International Finance Corporation (IFC)
Rating of Obligor: AAA Moody's/ AAA S&P
Exp. Issue Rating: AAA by S&P
Sukuk Structure: Sukuk al Wakala
Format: Reg S only
Tenor: 5yrs amortizing; WAL: 3.75yrs
Size: $100mn

Profit Rate: 6-month $ Libor minus 10 basis points
Listing: Nasdaq Dubai and London Stock Exchange (LSE will be subsequent to issuance)
Joint Lead Managers: Dubai Islamic Bank, HSBC, National Bank of Abu Dhabi and Standard Chartered Bank (B&D)

Investor breakdown: 75% Banks, 20% Official Institutions, 5% Fund Managers

About IFC

IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence to create opportunity where it’s needed most. In FY15, our long-term investments in developing countries rose to nearly $18 billion, helping the private sector play an essential role in the global effort to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org

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