Washington, D.C., November 17, 2011—IFC,
a member of the World Bank Group, today announced the launch and pricing
of a $3 billion five-year global bond issue. The issue is part of IFC’s
regular program of fundraising for private sector development lending.
The issue follows a $2 billion, five-year transaction in April and marks
the second time that IFC has issued two global bonds in one calendar year.
Consistent with IFC’s practice, the proceeds of this transaction will
be swapped into floating-rate U.S. dollar funds that will be available
for IFC investments in emerging markets.
“IFC’s global bond reflects our ability to raise funds for private sector
development, and our commitment to offering investment vehicles to international
capital markets during uncertain economic times,” said IFC EVP and CEO
Lars Thunell. “The funds will support our efforts to contribute to global
economic growth and job creation through the private sector in emerging
Jingdong Hua, IFC Vice President and Treasurer, said: “The strong demand
for this global bond issue in a difficult market environment reflects our
standing in the international capital markets as an issuer of high-quality,
The bond generated an order book of $3.72 billion via 66 investors. Demand
from central banks and official institutions dominated, contributing 76
percent of the orders. Investors in Asia accounted for 37 percent of demand,
while investors from Europe and the Middle East and North Africa accounted
for 34 percent. Accounts from the Americas amounted to 29 percent of orders.
The bonds, which mature on November 23, 2016, and carry a semi-annual coupon
of 1.125 percent p.a., were priced to yield 34.25 basis points over the
benchmark 5-year, 1% U.S. Treasury bond.
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. The IFC global bond issues provide
a benchmark for IFC’s other borrowing, and for the structured products
it arranges for its clients.
The transaction was lead managed by Citigroup, HSBC, and JPMorgan.
IFC Global Bond Summary Terms and Conditions
||November 16, 2011
||November 23, 2011
||November 23, 2016
||99.507% of par
||UST 1% due October 2016 plus 34.25 bps
IFC Global Bond Distribution of Orders
|By Geographic Region
||By Investor Type
||Central Banks/Official Institutions 76%
||Banks and Corporates 18%
||Fund Managers 6%|
IFC, a member of the World Bank Group is the largest global development
institution focused exclusively on the private sector. We help developing
countries achieve sustainable growth by financing investment, providing
advisory services to businesses and governments, and mobilizing capital
in the international financial markets. In fiscal 2011, amid economic uncertainty
across the globe, we helped our clients create jobs, strengthen environmental
performance, and contribute to their local communities—all while driving
our investments to an all-time high of nearly $19 billion. For more information,