Washington, D.C., March 7, 2018—IFC,
a member of the World Bank Group, today issued its first Kangaroo social
bond, raising 300 million Australian dollars (233 million USD equivalent)
for an innovative program that benefits women entrepreneurs and low-income
people in emerging markets and conflict-affected states.
The issuance is part of IFC’s Social
Bond Program, which was launched
in March 2017 with a 500 million global benchmark bond denominated in U.S.
dollars. The program gives investors the opportunity to have a positive
impact on the lives of people living in developing countries, and at the
same time enjoy a financial return on their investment.
Proceeds from the social bond support projects
that provide finance to low-income people, including buying from smallholder
farmers, or offering housing, education, and affordable healthcare. The
funds will also be used to help lending to women-owned enterprises, and
fund projects such as those that lend mainly to women entrepreneurs, including
refugee women fleeing conflict.
The five-year Kangaroo bond was bought by
more than 15 institutional investors across the world—including official
institutions, pension funds, and fund managers. The issuance helps deepen
the market for the growing category of Environment, Social and Governance-themed
bonds in Australia. ANZ, Deutsche Bank, and Nomura acted as Joint
“Our social bond creates an attractive alternative for investors seeking
triple-A rated impact-investment products," said Jingdong Hua, IFC's
Vice President and Treasurer. "IFC is very happy to include Australian
dollars in the social bond landscape. We will continue to bring innovation
and transparency to the Environment, Social and Governance bond market,
unlocking additional funding for development.”
Since the launch of the IFC Social Bond Program in March 2017, IFC has
issued eight social bonds in public and private markets across four different
currencies, amounting to a total volume of $667 million. IFC’s Banking
on Women and Inclusive Business Bond programs were merged into the IFC
Social Bond Program and renamed. Including our original issuances, IFC’s
social-themed bonds now total $1,231 million.
IFC has played a leadership role in developing
guidelines and procedures for the green bond market and the burgeoning
social bond market. IFC acts as co-chair of the working group on social
bonds established by the Green Bond Principles Executive Committee. In
line with the committee's social bond guidelines, the IFC Social Bond Program
provides investors with detailed information on the underlying projects
supported by the bonds. IFC released its annual Social Bond Impact Report
just ahead of the launch of the Kangaroo social bond issuance.
IFC Social Bond Terms
Issuer: IFC (International Finance Corporation)
Amount: AUD $300 million
Settlement date: March 15, 2018
Maturity date: March 15, 2023
Issue price: 99.861%
Issue yield: 2.73%
Underwriters: ANZ, Deutsche Bank, and Nomura
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.
Working with more than 2,000 businesses worldwide, we use our capital,
expertise, and influence to create markets and opportunities in the toughest
areas of the world. In FY17, we delivered a record $19.3 billion in long-term
financing for developing countries, leveraging the power of the private
sector to help end poverty and boost shared prosperity. For more information,