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First IFC Kangaroo Bond in 2011 Raises $1.5 Billion 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 28, 2011—IFC, a member of the World Bank Group, today announced the launch of a benchmark five-year 1.5 billion Australian-dollar bond ($1.64 billion equivalent). The issue is part of IFC’s regular program of raising funds for private sector development lending in emerging markets.

The issue has two tranches, both maturing in August 2016—a fixed-rate 1.25 billion Australian-dollar bond with a five-percent coupon, and floating rate notes in the amount of 250 million Australian dollars.  Both tranches had excess demand—the final order book was over 1.65 billion Australian dollars, with 35 accounts participating overall.  The majority of investors came from Asia.  Central banks from the region led demand.

“We are at the beginning of our fiscal year and have appetite for market operations,” said Jingdong Hua, IFC Vice President, Treasurer.  “This issue is a strong start to our FY12 fundraising target of $10 billion.”

IFC’s market borrowing activities focus on two 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.

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 is a regular issuer in the Kangaroo market, and we have been consistent in our approach since our first deal in 2008,” said John Borthwick, IFC Deputy Treasurer and Head of Funding.  “The strong demand and high quality and diversity of investors speak to IFC’s track record in the Kangaroo market.”

Australia and New Zealand Banking Group, Commonwealth Bank of Australia, and Westpac Institutional Bank were the joint lead managers for this transaction.

Kangaroo bonds are Australian-dollar denominated bonds sold by foreign borrowers in Australia.  IFC’s most recent Kangaroo bond was a dual fixed and floating issue launched in December 2010.  

About IFC

IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit www.ifc.org.

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