Washington D.C., October 8, 2019—IFC,
a member of the World Bank Group, today issued a new US dollar global benchmark
bond, raising $2 billion to support the private sector in developing countries
– including for women entrepreneurs, infrastructure and climate-smart
business in some of the most challenging markets.
The heavily oversubscribed issuance – the five-year benchmark bond generated
an order book of over $3 billion – highlighted IFC’s international leadership
role as the largest development institution focused exclusively on growing
the private sector in emerging markets.
“The robust investor response to IFC’s USD global benchmark is a testament
to our triple-A credit rating and standing as a premier global issuer,”
said IFC Vice President & 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
The reoffer yield was 1.436 percent—the equivalent of 8.9 basis points
over the corresponding U.S. Treasury note. Central banks and other official
institutions accounted for 61 percent of the orders, followed by banks
at 33 percent. Approximately 23 percent of orders came from investors in
The proceeds of this issue will be swapped into floating-rate U.S. dollar
funds that will be available for IFC investments in emerging markets.
IFC has issued US dollar-denominated global bonds each year since 2000,
and as a US dollar-based institution, most borrowings are swapped into
variable-rate US dollars.
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 to 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)
||October 8th, 2019
||October 16th, 2019 (T+5)
||October 16th, 2024
||99.707% / 1.436% s.a.
||1.375% (semi-annual, 30/360)
|Re-offer vs. mid-swaps
|Re-offer vs. Benchmark
||UST 1.5% due September 2024 + 8.9bps
||Citi, J.P. Morgan, Nomura, TD Securities
|Central Banks/Official Institutions
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.