WASHINGTON, D.C., April 25, 2006–The
International Finance Corporation, the private sector arm of the World
Bank Group, today launched a five-year, $1 billion issue under its Global
Medium Term Note program. The notes, which have a final maturity of May
2, 2011, carry a coupon rate of 5.125 percent per year (payable semi-annually).
The bonds were priced today to yield 29 basis points over the benchmark
U.S. Treasury bond. The proceeds of the issue will be swapped into
floating rate U.S. dollar funds for IFC’s general operational purposes.
The joint lead managers are BNP Paribas and HSBC. Co-lead Managers
are ABN Amro, Citigroup, Daiwa Securities, JP Morgan, Mizuho, Nomura, and
UBS. This is the seventh successive year that IFC has launched a
global U.S. dollar benchmark issue. For fiscal year 2006 (ending
June 30), IFC has a planned borrowing program of up to $2.0 billion equivalent.
IFC’s long-term debt is rated triple-A by both Standard & Poor’s
and Moody’s Investors Service.
The issue was oversubscribed and placed with over 50 high-quality accounts
globally. Asia accounted for 35 percent of the placement; North America,
for 30 percent; and Europe, the Middle East, and Africa for 35 percent.
IFC achieved its strategic objectives of balanced global distribution
at pricing compared to the sovereign and supranational peer group.
IFC Vice President, Finance and Treasurer Nina Shapiro said, “IFC was
especially delighted with the market reception for this transaction, given
changing market conditions and a more cautious investment outlook.” A
consistent issuance strategy resulted in broad global distribution. Ms.
Shapiro added that investors clearly appreciate the care the IFC takes
in marketing, executing, and supporting annual benchmark issues.
IFC’s annual US dollar global bond offering represents a key element of
the Corporation’s overall funding strategy. The objective is to
provide a market benchmark for the IFC both in terms of other borrowings,
and in structured finance for its clients. IFC also actively pursues borrowings
in emerging market currencies to promote local capital markets.
The mission of IFC (www.ifc.org)
is to promote sustainable private sector investment in developing countries,
helping to reduce poverty and improve people’s lives. IFC finances private
sector investments in the developing world, mobilizes capital in the international
financial markets, helps clients improve social and environmental sustainability,
and provides technical assistance and advice to governments and businesses.
From its founding in 1956 through FY05, IFC has committed more than US$49
billion of its own funds and arranged US$24 billion in syndications for
3,319 companies in 140 developing countries. IFC’s worldwide committed
portfolio as of FY05 was US$19.3 billion for its own account and US$5.3
billion held for participants in loan syndications.