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IFC Issues US Dollar 10-Year Global Bond, Raising $1 Billion to Support the Private Sector in Developing Countries

Washington, D.C., August 21, 2020–IFC, a member of the World Bank Group, today issued a new 10-year US dollar global benchmark bond, raising $1 billion to assist emerging economies recover from the COVID-19 health and economic crisis.
The 10-year benchmark pays a semi-annual coupon of 0.750%, priced with a spread of +18 basis points to mid-swaps, equivalent to +17 basis points over the corresponding U.S. Treasury note of 0.625% due August 2030. Joint lead managers for this transaction were Citi, HSBC, J.P. Morgan and Nomura.
Final books for the benchmark stood in excess of $1.2 billion, excluding joint-lead manager interest, with a solid demand from high quality accounts. This transaction marks IFC’s first 10-year US dollar global benchmark since 2016 and highlights the continued support IFC has from the investor community, as the largest development institution focused exclusively on developing the private sector in emerging markets. It is the third time that IFC has accessed US dollar primary markets with a global benchmark trade this calendar year. This past March, IFC issued a $1 billion three-year social bond, and in July, IFC issued a $2 billion five-year global bond.
“As the world continues to reel from the tragedy of the COVID-19 crisis, IFC is dedicated to supporting the private sector in emerging economies as they deal with the health and socio-economic effects of the pandemic,” said IFC Vice President and Treasurer John Gandolfo. “This issuance, which drew interest from over 40 investors around the globe, will support our work with clients and partners during these challenging times.”
Central banks and other official institutions accounted for 41 percent of the orders, followed by asset managers and pension/insurance funds at 34 percent and banks at 24 percent. About 50 percent of orders came from investors in Asia Pacific, 36 percent came from investors in Europe, Middle East and Africa, and 14 percent came from investors in the Americas.
IFC has issued US dollar-denominated global bonds each year since 2000. In addition, IFC complements its public issuance by accessing a variety of different markets, such as Uridashi, private placements and thematic bonds, like green bonds to support climate-smart business and social bonds to support on-lending to women-owned enterprises or companies that incorporate vulnerable populations. IFC also issues local-currency bonds to develop local capital markets and to fund local-currency investments. All IFC bond issuances are rated triple-A by Standard & Poor’s and Moody’s.
Final Terms
International Finance Corporation (IFC)
Aaa (stable) / AAA (stable) (Moody’s / S&P)
Issue Amount
US$ 1,000,000,000
Pricing Date
August 20, 2020
Settlement Date
August 27, 2020
Maturity Date
August 27, 2030
Re-Offer Price/Yield
99.396% / 0.813% s.a.
0.750% (semi-annual, 30/360)
Re-offer vs. Mid-swaps
Re-offer vs. Benchmark
UST 0.625% due August 2030 +17bp
Joint Bookrunners
Citi, HSBC, J.P. Morgan and Nomura
Distribution Statistics
Central Banks/Official Institutions:         41%              
AM/Pension/Insurance:                         34%
Banks:                                         24%              
Other:                                         1%              
Asia Pacific:                                 50%
Europe, Middle East, Africa:                 36%
Americas:                                 14%
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 in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2019, we invested more than $19 billion in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit .
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