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IFC’s 10-Year Kangaroo Bond Raises $500 Million Australian for Private Sector Development


In Washington, D.C.:
Alexandra Klopfer
Phone:  (202) 473-4645
E-mail:  AKlopfer@ifc.org

In Sydney:
Sara King
Phone:  61 2 9235-6524
E-mail:  Sking@ifc.org


Washington, D.C., July 21, 2010—IFC, a member of the World Bank Group, today announced the launch of its first 10-year Kangaroo bond.  The benchmark 500 million Australian-dollar ($436 million equivalent) issue is part of IFC’s regular program of raising funds for private sector development lending in emerging markets.  It is also IFC’s first 10-year benchmark-type bond since 1995.  

The securities were priced at 66.5 basis points over the underlying Australian government bond and will mature on July 28, 2020.  Australia and New Zealand Banking Group, Commonwealth Bank of Australia, and UBS were the joint lead managers for this transaction.

“IFC is pleased to maintain our commitment to the Australian-dollar market,” said John Borthwick, IFC Deputy Treasurer and Head of Funding.  “The 10-year note fits our strategy of expanding our yield curve in Australia through substantial transactions in the benchmark maturities and reflects the significant interest of investors in Australia and across Asia.”

The proceeds of the issue were swapped into floating rate U.S. dollar funds and will be used to finance IFC’s lending operations.  IFC provides loans, equity, structured finance, risk-management products, as well as advisory services to private enterprises in developing countries.

IFC’s market borrowing activities focus on two key goals—raising and securing funds to meet IFC’s annual funding requirements and stimulating growth in emerging capital markets by issuing bonds in local currencies such as Brazilian reais, Central African francs, and Malaysian ringgit.


For the fiscal year beginning on July 1, 2010, IFC has a planned global borrowing program of up to $12.5 billion equivalent.  IFC’s long-term debt is rated triple-A by both Standard & Poor’s and Moody’s Investors Service.

IFC most recent Kangaroo bond was a five-year issue launched in March 2010.  Kangaroo bonds are Australian-dollar denominated bonds sold by foreign borrowers in Australia.

About IFC

IFC, a member of the World Bank Group, is the largest development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives—by providing financing to help businesses employ more people and provide essential services, mobilizing capital from others, and delivering advisory and risk-management services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit www.ifc.org.