Washington, D.C., December 16, 2010—
IFC, a member of the World Bank Group, today announced that it raised 800 million Australian dollars ($794 million equivalent) from its fourth Kangaroo bond issue of the year. Proceeds of the issue will support IFC’s private sector development lending in emerging markets.
The issue includes a fixed-rate tranche totaling 400 million Australian dollars that increases IFC’s existing March 2015 bond to 1.5 billion Australian dollars. In addition, IFC also issued a floating rate tranche worth 400 million Australian dollars. IFC is one of a few supranational institutions to offer both fixed and floating rate issues in the Kangaroo market. Deutsche Bank, UBS Investment Bank, and Westpac Institutional Bank were the joint lead arrangers for this transaction.
“The issue responds to strong demand from a broad range of investors in Australia, Asia, and Europe, and reflects IFC’s continued commitment to the Australian dollar market,” said John Borthwick, IFC deputy treasurer and head of the funding program. “We decided to offer a fixed- and floating-rate tranche in response to investor demand,” he said.
The proceeds of the issue were swapped into floating-rate U.S. dollar funds and will be used to finance IFC’s lending operations. IFC provides loans, equity, structured finance, and risk management products, as well as advisory services to private enterprises in developing countries.
IFC’s funding activities focus on two key goals: raising and securing funds to meet IFC’s annual funding requirements, as well as stimulating growth in emerging capital markets by issuing bonds in local currencies, such as Brazilian Reais, Chinese Renminbi, Central African Francs, and Malaysian Ringgit.
For fiscal year 2010, IFC has a planned global borrowing program of up to US$12.5 billion equivalent. IFC’s long-term debt is rated triple-A by both Standard & Poor’s and Moody’s Investors Service.
Kangaroo bonds are Australian dollar denominated bonds sold by foreign borrowers in Australia.
Summary Terms
Issuer name: International Finance Corporation
Issuer rating: AAA/Aaa
Issue rating: AAA/Aaa
Pricing date: December 15, 2010
Settlement date: December 22, 2010
Maturity date: March 16, 2015
Lead managers: Deutsche Bank, UBS Investment Bank, Westpac Institutional Bank
Fixed rate tranche
Volume: 400 million Australian dollars
Total outstanding in this tranche: 1.5 billion Australian dollars
Coupon type: fixed
Coupon rate: 5.75%
Issue/re-offer price: 99.453% (plus 1.541% accrued)
Issue yield: 5.895%
Margin to government bond: 53.25bp/April 2015
Floating rate tranche
Volume: 400 million Australian dollars
Total outstanding in this tranche: 400 million Australian dollars
Coupon type: FRN
Coupon rate: 19bp/mid-swaps
Issue/re-offer price: par
About IFC
IFC, a member of the World Bank Group, is the largest development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives—by providing financing to help businesses employ more people and provide essential services, mobilizing capital from others, and delivering advisory and risk-management services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit
www.ifc.org
.
