Washington, D.C., July 9, 2015—IFC,
a member of the World Bank Group, today issued a $2.25 billion, five-year
global bond as part of its regular program of raising funds for private
sector development lending.
The issue generated an order book of $3.25 billion. The bond yields 1.705%.
It priced at a spread of 16.2 basis points over U.S. treasuries, marking
a solid start to IFC’s borrowing program for the fiscal year ending June
“IFC’s funding operations are core to our business. They generate the
liquidity we need to maintain IFC’s strong financial position and meet
the financing needs of our private sector clients in emerging markets,”
said Jingdong Hua, IFC VP and Treasurer.
“Thanks to IFC’s international triple-A credit rating and our standing
as a premier global issuer, we have come back to the dollar market to very
strong reception—amid the volatility we see in markets globally. The positive
response from investors so early in our new financial year puts us on a
very strong footing.”
Consistent with IFC’s practice, 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 dollar-denominated global bonds each
year since 2000 and last issued a global dollar bond in July 2014. All
IFC bond issuances are rated triple-A by Standard & Poor’s and Moody’s.
The transaction was lead managed by Citi, Credit Suisse, Goldman Sachs
International and Toronto Dominion.
IFC plans to raise $17 billion across a range of markets and currencies
during its current fiscal year. Borrowings denominated in U.S. dollars
account for over half of IFC’s funding program, with a growing proportion
of borrowings coming from emerging markets such as Brazilian real, Chinese
yuan and Indian rupee. As well, IFC will continue to borrow in historically
important markets such as the Australian-dollar Kangaroo market and the
Japanese retail market.
IFC also issues discount notes in U.S. dollars and in the offshore Turkish
lira and Chinese yuan markets; thematic bonds that support specific areas
such as climate change; and local currency bonds to develop local capital
markets and to fund local currency investments.
IFC Global Bond Summary Terms and Conditions
Issuer: IFC (International Finance Corporation, IFC)
Amount: US$2.25 billion
Settlement date: July 16, 2015
Maturity date: July 16, 2020
Issue price: 99.618%
Denomination: USD 1,000
Listing: London Stock Exchange
Underwriters: Citi, Credit Suisse, Goldman Sachs International, Toronto
IFC Global Bond Distribution of Orders
Central Bank/Official Institution 47%
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. Working with private
enterprises in about 100 countries, we use our capital, expertise, and
influence to help eliminate extreme poverty and boost shared prosperity.
In FY14, we provided more than $22 billion in financing to improve lives
in developing countries and tackle the most urgent challenges of development.
For more information, visit www.ifc.org.