Washington, D.C., August 22, 2018— IFC, a member of the World Bank Group, has issued a 7-year sterling benchmark bond, attracting strong investor demand and raising 500 million pounds to stimulate private sector growth, and help create jobs and advance entrepreneurship in developing countries.
This marks IFC’s first sterling-denominated bond since issuing its inaugural green bond raising 350 million pounds in July, and is IFC’s largest sterling bond issuance.
The bond, listed on the Luxembourg Stock Exchange, was heavily oversubscribed, with banks comprising 73 percent of investors, asset managers 10 percent, and central banks and official institutions 17 percent. The proceeds of the bond will go to finance IFC investments in emerging markets.
Jingdong Hua, IFC Vice President and Treasurer, said: “I am very happy that IFC is returning to the sterling market. Our diversified funding program is essential to finance our global investments in some of the poorest and most challenging countries. Private sector development can help fight climate change, break down the digital divide, and encourage women-owned businesses and entrepreneurship.”
Lee Cumbes, Managing Director, Head of Public Sector EMEA, Barclays said: “We congratulate IFC on another positive sterling transaction, successfully extending their yield curve. IFC achieved an impressive outcome that adds 500 million pounds to their 2018-2019 funding program. The oversubscription and quality of the order book is a testament to continued investor appetite.”
Adrien de Naurois, SSA Syndicate, Bank of America Merrill Lynch said: “This is a phenomenal transaction, with IFC reopening the sterling market following the summer holiday period with a rare 7-year benchmark. The transaction follows IFC’s first-ever sterling green bond in July and highlights continued investor demand for high quality-names.”
Kerr Finlayson, SSA Syndicate, RBC Capital Markets said: “This is a truly outstanding result for IFC, representing their largest sterling bond to date. The tight pricing and healthy oversubscription is testament to the positive tone in the sterling SSA (Sovereign, Supranational, and Agency) market and the high regard IFC is held in with the sterling investor base.”
IFC Sterling Bond Terms
Issuer: IFC (International Finance Corporation)
Amount: GBP 500 million
Pricing date: August 21st, 2018
Settlement date: August 29th, 2018
Maturity date: March 7th, 2025
Issue price: 99.780%
Reoffer Yield: 1.406%
Coupon: 1.375%
Listing: Luxembourg Stock Exchange
Lead Managers: Barclays, BofA Merrill Lynch, RBC Capital Markets
Distribution by Geography (%)
EMEA (37%)
UK (63%)
Distribution by Investor Type (%)
Central Bank/Official Institution: (17%)
Banks: (73%)
Asset Managers: (10%)
About IFC
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In fiscal year 2018, we delivered more than $23 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit
www.ifc.org
