LONDON, Nov. 8 -- The International Finance Corporation (IFC) has launched a tender offer for the repurchase of some of its outstanding U.S. dollar Eurobond issues. IFC is tendering for four of its U.S. dollar Eurobond issues totaling US$1.1 billion: the 7.125 percent bonds due December 1996, 8.25 percent bonds due March 1998, 8.75 percent bonds due July 1996, and the 9.25 percent bonds due June 1995. It is intended that a maximum of US$150 million be repurchased, with no more than US$50 million in repurchases of any one bond issue. The three-week repurchase program, which is targeted to investors outside the U.S., begins today. Deutsche Bank AG London will head a panel of repurchase agents. "Our main objective in undertaking this debt buy-back program is to enhance the value to investors of IFC's outstanding Eurodollar issues by providing investors with the option of selling those bonds back to IFC at a fair price," said Robert Graffam, Director of IFC's Treasury and Financial Planning department. "At the sa
me time, the repurchases would have benefits to IFC, including an additional means to manage our liabilities. We are prepared to repurchase as much as US$150 million, but we will certainly not be disappointed if investors choose to retain their holdings." This is the first time IFC has offered to repurchase any of its issued and outstanding debt. IFC currently has US$4.9 billion equivalent in market debt outstanding. Its long-term debt is rated Triple A by both Standard & Poors and Moody's Investors Services. IFC is a member of the World Bank Group and is the largest multilateral source of financing for private sector companies in developing countries.
Note: Reference pricing available on Reuters page DBFY
