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Second IFC Global Bond in 2010 Raises $2 Billion for Private Sector Lending in Emerging Markets


In Washington, D.C.:
Alexandra Klopfer

Phone: (202) 473-4645

E-mail:
aklopfer@ifc.org


Washington, D.C., November 10, 2010—IFC, a member of the World Bank Group, today announced the launch and pricing of a $2 billion seven-year global bond issue. The issue is part of IFC’s regular program of raising funds for private sector development lending. It follows a $2 billion, five-year transaction in April, marking the first time that IFC has issued two global bond issues in one calendar year. It is also the first IFC benchmark global bond issue with a maturity other than five years.

The transaction was lead managed by Deutsche Bank AG, Royal Bank of Scotland Group Plc, and UBS Investment Bank.  


“This issue demonstrates a continued demand for IFC debt from leading investors around the world,” said Nina Shapiro, IFC Vice President for Finance and Treasurer. “It is a strong vote of confidence in the global bond issuance program we have established over the past decade.”


The bond generated an order book of $2.5 billion. A total of 50 investors participated in the transaction. Demand from central banks dominated, contributing 80 percent of the orders. Investors in Asia accounted for 50 percent of demand, while investors from Europe and the Middle East and North Africa accounted for 40 percent. Despite pricing close to the yield curve for U.S. government-sponsored enterprises, a number of high quality U.S. accounts also participated, accounting for 10 percent of orders.


“IFC’s $2 billion issue was the largest and most tightly priced recent seven-year global bond issued by a supranational. This result was made possible by increased investor demand for longer duration assets and the breadth of IFC’s global investor base,” said John Borthwick, IFC Deputy Treasurer and Head of Funding. “We once again had a high level of repeat subscription, illustrating the confidence investors worldwide have developed in IFC’s global bond issuance program.”


The bonds, which mature on November 17, 2017 and carry a semi-annual coupon of 2.125 percent, were priced to yield 31.25 basis points over the benchmark seven-year U.S. Treasury bond. The proceeds of this issue will be swapped into floating-rate U.S. dollar funds that will be available for IFC’s general operations.


IFC is the global leader among multilaterals in private sector development finance, accounting for about 30 percent of the financing committed by international financial institutions. Historically, IFC had issued a $1 billion, five-year global bond each year that provides a benchmark for IFC’s other borrowing, and for the structured products it arranges for its clients.


About IFC

IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit
www.ifc.org.

IFC Global Bond Summary Terms and Conditions
Issue amount $2 billion
Pricing date November 10, 2010
Payment date November 17, 2010
Maturity date November 17, 2017
Re-offer price 99.252
Re-offer yield 2.241%
Semi-annual coupon 2.125%
Re-offer spread UST due October 2017 plus 31.25 bps
Format Global
Listing Luxembourg





IFC Global Bond Distribution of Orders


By Geographic Region         By Investor Type

Asia—50%                             Central Banks/Official Institutions—80%
EMEA—40%                          Banks and Corporates—14%

US—10%                                Funds Managers—6%