Washington, D.C., July 13, 2016—
IFC, a member of the World Bank Group, today issued a $2.5 billion global bond—a heavily oversubscribed issuance that marked a solid start to the institution’s annual borrowing program to support private sector development in emerging markets.
The five-year bond generated an order book of $3.8 billion, indicating strong investor demand. The bonds yield 1.229 percent—the equivalent of 17.45 basis points over
the corresponding U.S. Treasury note. Central banks and other official institutions accounted for 58 percent of the orders. More than half the orders came from investors in the Asia-Pacific region.
“Thanks to IFC’s international triple-A credit rating and our standing as a premier global issuer, we have begun the year with a very strong reception in the U.S. dollar market—despite the volatility we see in markets globally,” said Jingdong Hua, IFC VP and Treasurer. “The positive response from investors so early in our new financial year puts us on a very strong footing.”
Consistent with IFC’s practice, the proceeds of this 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 and last issued a five-year global dollar bond in July 2015. All IFC bond issuances are rated triple-A by Standard & Poor’s and Moody’s.
IFC’s borrowing program has expanded in recent years to keep pace with the growth in its investments across the world, reaching $16.2 billion in the fiscal year that ended June 30, 2016. Bonds denominated in U.S. dollars account for more than 60 percent of IFC’s funding program. In addition, IFC issues bonds in historically important markets such as the Australian-dollar Kangaroo market and the Japanese retail market.
IFC also issues discount notes in U.S. dollars and in the offshore Turkish lira and Chinese yuan markets; thematic bonds that support specific areas such as climate change; and local-currency bonds to develop local capital markets and to fund local-currency investments.
IFC Global Bond Summary Terms
Rating: Aaa (stable) / AAA (stable)
Issue Amount: $ 2.5 billion
Issue Date: 13
th
July 2016
Settlement Date: 20
th
July 2016
Maturity Date: 20
th
July 2021
Reoffer Price: 99.497%
Re-offer yield: 1.229%
Coupon: 1.125% semi-annual, 30/360
Re-offer spread: Mid-swaps + 20 bps, equivalent to 17.45 bps over UST
Denomination: USD 1,000
Format: GMTN
Listing: London Stock Exchange
Lead managers: Barclay’s, BMO, J.P. Morgan, Nomura
IFC Global Bond Distribution of Orders
By investor type
Central Banks / Official Institutions 58%
Bank Treasuries 31%
Fund Managers 11%
By geography
Americas 27%
EMEA 22%
Asia Pacific 51%
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 2,000 businesses worldwide, we use our six decades of experience to create opportunity where it’s needed most. In FY15, our long-term investments in developing countries rose to nearly $18 billion, leveraging our capital, expertise and influence to help the private sector end extreme poverty and boost shared prosperity. For more information, visit
www.ifc.org
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