Dubai, September 10, 2015—IFC,
a member of the World Bank Group, announced today that it issued a $100
million trust certificates through a special purpose vehicle, IFC Sukuk
Company, in an effort to spur growth in developing economies.
The five-year Sukuk will support IFC’s
developmental financing activities in the Middle East and North Africa
(MENA), and other parts of the world. It will initially be listed on NASDAQ
Dubai. An application has also been made to list the Sukuk on the London
Stock Exchange. The transaction will be IFC’s second Sukuk issuance.
“We are pleased to be part of this
landmark Sukuk issuance by IFC, which achieved the tightest pricing for
a dollar-denominated Sukuk. The issuance supports the growth of the Islamic
finance and Sukuk industry beyond its traditional borders,” said Ahsan
Ali, Managing Director and Head of Islamic Origination at Standard Chartered
Bank.
“As a non-Islamic multilateral, IFC’s
Sukuk is expected to help deepen the Sukuk market in the countries of the
Gulf Cooperation Council, sending a positive signal for the development
of the Gulf region's markets," said Mouayed Makhlouf, IFC Director
for the Middle East and North Africa.
Bahar Alsharif, IFC Deputy Treasurer,
said: “This issuance will help meet the funding needs of our private-sector
clients in the Middle East and globally. As a premium global issuer, IFC
is keen to offer international and regional investors high-quality alternatives
in Islamic financial markets.”
IFC, an AAA-rated global financial institution,
carried out its first Islamic finance investment in 1995, supporting a
leasing project in Pakistan. To date, IFC has approved about 28 Islamic
financing transactions worth a total of $742 million.
IFC Sukuk Summary Terms and Conditions
Issuer: IFC Sukuk Company
Obligor: International Finance Corporation (IFC)
Rating of Obligor: AAA Moody's/ AAA S&P
Exp. Issue Rating: AAA by S&P
Sukuk Structure: Sukuk al Wakala
Format: Reg S only
Tenor: 5yrs amortizing; WAL: 3.75yrs
Size: $100mn
Profit Rate: 6-month $ Libor minus 10
basis points
Listing: Nasdaq Dubai and London Stock Exchange (LSE will be subsequent
to issuance)
Joint Lead Managers: Dubai Islamic Bank, HSBC, National Bank of Abu Dhabi
and Standard Chartered Bank (B&D)
Investor breakdown: 75% Banks, 20% Official
Institutions, 5% Fund Managers
About IFC
IFC, a member of the World Bank Group,
is the largest global development institution focused on the private sector
in emerging markets. Working with more than 2,000 businesses worldwide,
we use our capital, expertise, and influence to create opportunity where
it’s needed most. In FY15, our long-term investments in developing countries
rose to nearly $18 billion, helping the private sector play an essential
role in the global effort to end extreme poverty and boost shared prosperity.
For more information, visit www.ifc.org
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