WASHINGTON, D.C., April 18, 2007
–IFC, 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 April 25, 2012, carry a coupon
rate of 4.75 percent per year (payable semi-annually). The bonds
were priced today to yield 27 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 general operational purposes.
The joint lead managers are Citi and
Nomura. Co-lead managers are ABN Amro, BNP Paribas, Daiwa Securities,
HSBC, JP Morgan, Morgan Stanley, and UBS. This is the eighth consecutive
year that IFC has launched a global U.S. dollar benchmark issue. For
fiscal year 2007 (ending June 30), IFC has a planned borrowing program
of up to $3.0 billion equivalent. IFC’s long-term debt is rated triple-A
by both Standard & Poor’s and Moody’s Investors Service.
The issue was significantly oversubscribed
with orders from over 50 top-quality accounts globally. Asia accounted
for 32 percent of the placement; the United States for 34 percent; and
others, including Europe and the Middle East, for 34 percent. IFC
again achieved its strategic objectives of balanced quality distribution
at favorable pricing relative to its sovereign and supranational peer group.
IFC Vice President, Finance and Treasurer
Nina Shapiro, said, “IFC is delighted with the market reception for this
transaction, which demonstrates the broad investor base that the Corporation
has developed for its global bond issues. Investors appreciate IFC’s
credit story and its approach and execution of global bond issues.”
IFC’s annual U.S. 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
Corporation, 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.
IFC, the private sector arm of the World
Bank Group, promotes open and competitive markets in developing countries.
IFC supports sustainable private sector companies and other partners in
generating productive jobs and delivering basic services, so that people
have opportunities to escape poverty and improve their lives. Through FY06,
IFC Financial Products has committed more than $56 billion in funding for
private sector investments and mobilized an additional $25 billion in syndications
for 3,531 companies in 140 developing countries. IFC Advisory Services
and donor partners have provided more than $1 billion in program support
to build small enterprises, to accelerate private participation in infrastructure,
to improve the business-enabling environment, to increase access to finance,
and to strengthen environmental and social sustainability. For more information,
please visit www.ifc.org.