Washington, D.C., July 2, 2014—
IFC, a member of the World Bank Group, today issued a $3 billion five-year bond as part of a program that aims to raise up to $18 billion over the next year to support private sector development in some of the world’s most challenging markets.
The five-year global bond—denominated in U.S. dollars—generated an order book of over $3.6 billion and set the pricing benchmark for IFC’s borrowing program for the fiscal year ending June 30, 2015. The borrowing program supports nearly all of the financing IFC provides to private enterprises in developing countries.
“These funding operations are crucial to IFC’s success as a self-financing development institution,” said Jingdong Hua, IFC Vice President and Treasurer. “They help ensure that we remain financially sustainable, using our triple-A credit rating to borrow funds at the lowest market rates and deliver them to our clients in developing countries.”
By June 30, 2015, IFC plans to raise $18 billion across a range of markets and currencies. IFC issues bonds in a variety of markets—including the Australian-dollar Kangaroo market, the U.S. domestic market, and the Japanese market. IFC also issues discount notes in U.S. dollars and in the offshore renminbi market. In addition, it issues thematic bonds that support specific areas such as climate change and local-currency bonds to develop local capital markets.
Consistent with IFC’s practice, the proceeds of the latest bond issuance issue will be swapped into floating-rate U.S. dollar funds that will be available for IFC investments in emerging markets. IFC has issued dollar-denominated global bonds each year since 2000. All IFC bond issuances are rated triple-A by Standard & Poor’s and Moody’s.
The transaction was lead managed by Bank of America, Merrill Lynch, BNP Paribas, JP Morgan, and Nomura.
IFC Global Bond Summary Terms and Conditions
Issue amount $ 3,000,000,000.00
Pricing date July 2, 2014
Payment date July 10, 2014
Maturity date September 16, 2019
Re-offer price 99.587%
Re-offer yield 1.834%
Semi-annual coupon 1.75%
Re-offer spread Mid-swaps + 1 basis point, equivalent to 14.25 basis points over U.S. Treasuries
Format GMTN
Listing Luxembourg
IFC Global Bond Distribution of Orders
By Geographic Region
Americas 21%
Asia-Pacific 32%
EMEA 47%
By Investor Type
Banks and Corporates 47%
Central Banks and Official Institutions 48%
Fund Managers 6%
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in more than 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and promote shared prosperity. In FY13, our investments climbed to an all-time high of nearly $25 billion, leveraging the power of the private sector to create jobs and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org
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