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IFC Launches $3 Billion Debt-Issuance Program to Increase Options for Development Financing


In Washington:
Corrie Shanahan

Phone: (202) 473-2258

E-mail:
cshanahan@ifc.org


Washington, D.C., June 3, 2009—IFC, a member of the World Bank Group, has launched a $3 billion short-term debt-issuance program that will increase its options for funding an array of development activities while also strengthening its cash-management capacity and providing investors with a safe new vehicle for short-term investment.

Under the new Discount Note Program, IFC will issue debt with terms ranging from overnight to one year. The notes will give IFC additional means of financing short-term lending to clients—including those that borrow under the Global Trade Liquidity Program, a coordinated initiative that brings together governments, development finance institutions, and commercial banks to address the shortage of trade finance resulting from the global financial crisis.


"The Discount Note Program is another important financial solution that IFC has devised in response to the changed conditions in financial markets as a result of the global financial crisis," said IFC Executive Vice President and CEO Lars Thunell. "This innovation will enable IFC to expand its development activities in emerging markets, especially the poorest countries and regions."


Nina Shapiro, IFC Vice President, Finance, and Treasurer, said: “The Discount Note Program is an excellent complement to our successful Global Medium Term Note Program. It increases IFC’s financial-management flexibility and allows investors the opportunity to hold IFC’s dollar notes in shorter tenors.”

IFC leverages its triple-A credit rating to raise funds for investment and lending to promote the private sector in developing countries. Amid the financial crisis, investor demand for high-grade short-dated instruments such as discount notes has grown significantly.

Discount notes do not make coupon interest payments but instead are issued at a discount to par and are redeemed at par. IFC will offer its discount notes through a group of dealers on a continuous basis in the Eurodollar and the U.S. domestic market.  The notes will be denominated in U.S. dollars.

IFC has appointed Barclays Capital, Credit Suisse Securities, HSBC Securities, JP Morgan Securities, and UBS Securities as authorized dealers for the program, which has an authorized limit of $3 billion. The Federal Reserve Bank of New York is the fiscal agent. The notes will be settled via Fedwire.

About IFC

IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous year. For more information, visit
www.ifc.org.