Press Releases

IFC Launches $1 Billion Global Bond amid Strong Investor Demand

IFC Contact:
Elizabeth Price

Phone: +1 (202) 458-0387


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.

About IFC
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