WASHINGTON, D.C., April 27, 2005 – The
International Finance Corporation, the private sector arm of the World
Bank Group, today launched a five-year US$1 billion issue under its Global
Medium Term Note program. The notes, which have a final maturity of June
15, 2010, carry a coupon rate of 4.0 percent per year (payable semi-annually).
The bonds were priced today to yield 23 basis points over the benchmark
U.S. Treasury bond. The proceeds of the issue will be swapped into
floating rate U.S. dollar funds for IFC general operational purposes.
The Joint Lead Managers are BNP Paribas, Citigroup and UBS Investment Bank.
Co-lead Managers are Daiwa Securities, HSBC, JP Morgan, and Nomura.
This is the sixth successive year that IFC has launched a global
U.S. dollar benchmark issue, and it brings IFC’s market borrowings for
the current fiscal year 2005 (July 1, 2004- June 30, 2005) to $ 2.1 billion.
For the fiscal year as a whole, IFC plans a borrowing program of
up to $2.5 billion equivalent. IFC’s long-term debt is rated triple-A
by both Standard & Poor’s and Moody’s Investors Service.
The issue was heavily oversubscribed and placed with over 60 accounts globally.
Asia accounted for 38 percent of the placement; North America, for
31 percent; and Europe, the Middle East, and Africa for 31 percent. As
such it achieved IFC’s strategic objectives of balanced global distribution
at pricing consistent with that of the top tier of the Corporation’s sovereign
and supranational peer group.
IFC Vice President, Finance and Treasurer Nina Shapiro said “We are extremely
pleased with the market reception for this transaction. The worldwide
placement of this bond issue reflects the strong name recognition and following
that IFC has developed with key investors in the international capital
markets through its program of annual benchmark bond issues.” Ms.
Shapiro added that she is especially pleased with the strong investor response
in Europe and the United States, which significantly exceeded expectations.
IFC’s annual US dollar global bond offering represents a key element of
the Corporation’s overall funding strategy. This objective of this
transaction is to provide a pricing reference point for IFC in its supranational
and sovereign peer group. This in turn helps IFC complete the balance
of its annual funding program at effective cost.
Borrowings in emerging market currencies are a particularly important part
of the balance of the funding program, especially transactions undertaken
in domestic markets. Such transactions are effective in helping facilitate
capital market development in IFC’s client countries. As a result
of this strategy, IFC has been the first or among the first non resident
borrowers in many of the currencies in which it has issued debt. IFC has
borrowed in 33 currencies overall and currently has outstanding market
borrowings amounting to about $17 billion.
The mission of IFC (www.ifc.org) is to promote sustainable private sector
investment in developing countries, helping to reduce poverty and improve
people’s lives. IFC finances private sector investments in the developing
world, mobilizes capital in the international financial markets, helps
clients improve social and environmental sustainability, and provides technical
assistance and advice to governments and businesses. From its founding
in 1956 through FY04, IFC has committed more than $44 billion of its own
funds and arranged $23 billion in syndications for 3,143 companies in 140
developing countries. IFC’s worldwide committed portfolio as of FY04 was
$17.9 billion for its own account and $5.5 billion held for participants
in loan syndications.