WASHINGTON, D.C., April 21, 2008—IFC,
a member of the World Bank Group, today announced the launch and pricing
of a five-year $1 billion benchmark issue, part of its regular program
of raising funds for development lending. IFC’s ninth annual global bond
issue attracted strong demand from investors around the world.
The bonds, which mature May 15, 2013, carry a coupon of 3.5 percent, priced
to yield 61 basis points over the benchmark U.S. Treasury bond.
“We are delighted by the broad global reception to this issue, given the
many uncertainties in the international capital markets,” said IFC Vice
President, Finance, and Treasurer Nina Shapiro. “The continued support
of our loyal investor base and the welcome participation by some significant
new accounts were instrumental to the success of this latest issue.”
The issue was oversubscribed, with orders from almost 60 leading financial
institutions. Investors from Asia bought 35 percent of the bonds, while
investors in the Americas took 25 percent and those in Europe and the Middle
East took 40 percent.
JP Morgan and Nomura were joint lead managers for the bonds, while the
co-lead managers comprised BNP Paribas, Citi, Daiwa Securities, HSBC, Morgan
Stanley, and UBS Investment Bank.
IFC plans to leverage its triple-A credit rating to raise about $5 billion
this fiscal year for investment and lending to promote the private sector
in developing countries. IFC’s annual U.S. dollar global bond offering
is a key element of its funding strategy. The annual global issue provides
a market benchmark, both for IFC’s other borrowing and the structured
products it arranges for its clients. The proceeds of this issue will be
swapped into floating-rate U.S. dollar funds that will be available for
IFC’s general operations.
IFC also borrows in emerging market currencies to promote the development
of local capital markets.
IFC, a member of the World Bank Group, fosters sustainable economic growth
in developing countries by financing private sector investment, mobilizing
private capital in local and international financial markets, and providing
advisory and risk mitigation services to businesses and governments. IFC’s
vision is that people should have the opportunity to escape poverty and
improve their lives. In FY07, IFC committed $8.2 billion and mobilized
an additional $3.9 billion through syndications and structured finance
for 299 investments in 69 developing countries. IFC also provided advisory
services in 97 countries. For more information, visit www.ifc.org.