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IFC Launches Global Dollar Bond Issue:Oversubscribed Issue Achieves Quality Order Book


In Washington
Cynthia Case
Phone: +1 (202) 473 6287
Email:
CCase@ifc.org


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.