Washington, D.C., April 3, 2013—IFC,
a member of the World Bank Group, today issued a $2 billion, five-year
global bond. The issue is part of IFC’s regular program of raising funds
for private sector development lending, and brings IFC’s funding program
to over 90 percent of its total target for FY13.
“Our global bond program is an essential part of our strategy to support
projects that foster inclusive growth and shared prosperity in developing
countries,” said Jingdong Hua, IFC Vice President and Treasurer. “The
strong market interest in this offering reflects the quality of IFC’s
investment portfolio and the increasingly significant role developing countries
are playing in driving the global economy.”
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 a dollar-denominated global bond each
year since 2000. In the past two years, IFC issued two global bonds during
each calendar year. All IFC bond issuances are rated triple-A by Standard
& Poor’s and Moody’s. IFC debt receives a zero risk weighting under
Basel II.
Wolfgang Meyer, IFC Director for Treasury Market Operations, said: “With
this issue, IFC continues to show that we are a regular and committed issuer
in the global capital markets. Our strategy is to remain flexible and continually
assess market conditions to ensure that our issues achieve optimal results
in terms of spreads.”
IFC’s funding program for this fiscal year is $10 billion. IFC raises
funds across a range of markets and currencies. Borrowings denominated
in U.S. dollars account for the majority of IFCs’ funding program. Other
funding sources include the Australian-dollar Kangaroo market, the U.S.
domestic market, and the Japanese retail market. IFC also issues local
currency bonds to develop local capital markets and to fund local currency
loans, as well as theme bonds such as as green bonds which go to support
climate-change related projects.
The transaction was lead managed by Citi, JPMorgan, and Nomura.
IFC Global Bond Summary Terms and Conditions
Issue amount: US$2,000,000,000.00
Pricing date: April 3, 2013
Payment date: April 10, 2013
Maturity date: June 15, 2018
Re-offer price: 99.662%
Re-offer yield: 0.942%
Semi-annual coupon: 0.875%
Re-offer spread vs Swaps: -3bps
Re-offer spread vs Treasuries: +20.3
Format: GMTN
Listing: Luxembourg
IFC Global Bond Distribution of Orders
By Geographic Region
Asia: 33%
Americas: 36%
EMEA: 32%
By Investor Type
Central banks: 65%
Banks/Corporations: 14%
Fund managers: 21%
About IFC
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. We help developing
countries achieve sustainable growth by financing investment, mobilizing
capital in international financial markets, and providing advisory services
to businesses and governments. In FY12, our investments reached an all-time
high of more than $20 billion, leveraging the power of the private sector
to create jobs, spark innovation, and tackle the world’s most pressing
development challenges. For more information, visit www.ifc.org.
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