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Washington, D.C., November 14, 2012
—IFC, a member of the World Bank Group, today announced the launch and pricing of a $1 billion, five-year global bond issue. The issue, which is part of IFC’s regular program of raising funds for private sector development lending, sets the pricing benchmark for IFC’s FY13 borrowing program.
“IFC’s global bond program is an essential part of our strategy for funding private sector investments in emerging markets,” said Jingdong Hua, IFC Vice President and Treasurer. “Our bonds directly support IFC’s objectives to help the private sector create shared prosperity and inclusive growth. This is particularly important as developing countries play an increasingly significant role in driving the global economy.”
Consistent with IFC’s practice, the proceeds of this issue will be swapped into floating-rate U.S. dollar funds that will be available for IFC investments in emerging markets. IFC has issued a dollar-denominated global bond each year since 2000. In the past two years, IFC issued two global bonds during each calendar year. All IFC bond issuances are rated triple-A by Standard & Poor’s and Moody’s. IFC debt receives a zero risk weighting under Basel II.
Wolfgang Meyer, IFC Director for Treasury Market Operations, said: “Over the years, IFC has developed a strong reputation as a committed issuer in the global capital markets. This bond, with its high level of demand and balanced distribution of orders, reflects our long-standing relationships with central banks, official institutions, and other investors.”
IFC plans to raise $10 billion across a range of markets and currencies this fiscal year. Borrowings denominated in U.S. dollars account for the majority of IFCs’ funding program. Other funding sources include the Australian-dollar Kangaroo market, the U.S. domestic market, and the Japanese retail market. IFC also issues local currency bonds to develop local capital markets and to fund local currency loans.
The transaction was lead managed by Barclays, BNP Paribas, and Deutsche Bank.
IFC Global Bond Summary Terms and Conditions
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Issue amount
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US$1,000,000,000.00
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Pricing date
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November 14, 2012
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Payment date
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November 21, 2012
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Maturity date
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December 21, 2017
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Re-offer price
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99.432%
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Re-offer yield
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0.739%
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Semi-annual coupon
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0.625%
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Re-offer spread
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MS – 4 bps
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Format
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GMTN
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Listing
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Luxembourg
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IFC Global Bond Distribution of Orders
By Geographic Region
Asia: 37%
Americas: 33%
EMEA: 30%
By Investor Type
Central banks: 81%
Banks/Corporations: 15%
Fund managers: 4%
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org
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