WASHINGTON, D.C., May 4 -- On May 3, 1995, the International Finance Corporation (IFC) launched its debut publicly listed domestic Swiss Franc bond issue for the amount of CHF 150 million (approximately US$133 million equivalent). The 6-year bonds carry an annual coupon of 4.75 percent per annum and an issue price of 102.625 percent. The proceeds of the issue will be swapped into U.S. dollar floating-rate funds.
This is IFC's second issue in the Swiss Franc market, after a nearly 10-year absence. IFC's first entry to the market was in the form of a CHF 100 million private placement in July 1986. This debut public issue provided an opportunity for IFC to directly target the Swiss retail investor base with the goal of enhancing IFC's marketability among the investor group, which has been the driving force for demand of bonds in most currencies in which IFC has issued bonds.
The lead manager of the issue is the Union Bank of Switzerland. The syndicate group consists of fifteen financial institutions, representing Swiss private banks and international investment banks active in the Swiss Franc market.
This transaction brings IFC's market borrowing to about US$1.8 billion for fiscal year 1995, which began on July 1, 1994.
IFC, a member of the World Bank Group, is the largest multilateral source of financing for private sector companies in developing countries. Its long-term debt is rated triple A by both Standard & Poor's Corp. and Moody's Investors Service.
