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WASHINGTON, D.C., April 21, 2004
—The International Finance Corporation, the private sector arm of the World Bank Group, today launched a five-year $1 billion issue under its Global Medium Term Note Program. The notes, which have a final maturity of June 30, 2009, carry a coupon rate of 3.75 percent per annum (payable semi-annually), with a long first coupon. The bonds were priced today to yield 24 basis points over the benchmark U.S. Treasury bond. The proceeds of the issue will be swapped into floating rate U.S. dollar funds for general operational purposes. The Joint Lead Managers are J.P. Morgan Securities Ltd. and Nomura International plc. Co-lead Managers are BNP Paribas, Citigroup, Daiwa SMBC, HSBC, Merrill Lynch, Mizuho International, and UBS.
This is the fifth successive year IFC has launched a global U.S. dollar benchmark issue. The fiscal year began on July 1, 2003. The issue was heavily oversubscribed and placed with over 80 accounts globally. Asia accounted for 39 percent of the placement; North America, for 32 percent; and Europe, Middle East, and Africa, for 29 percent. IFC’s long-term debt is rated triple-A by both Standard & Poor’s and Moody’s Investors Service.
IFC Vice President, Finance and Treasurer Nina Shapiro said, “We are extremely pleased with the market reception for this transaction. The broad distribution reflects a strong appreciation for IFC’s credit and the issuance strategy that we have developed for the annual benchmark bond issues.”
The mission of IFC (
www.ifc.org
) is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY03, IFC has committed more than $37 billion of its own funds and arranged $22 billion in syndications for 2,990 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY03 was $16.8 billion for its own account and $6.6 billion held for participants in loan syndications.
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