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.
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.