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IFC Launches New Five-Year Canadian Dollar Benchmark, Raising CAD 500 Million to Support Developing Countries

Washington, D.C., Sept. 1, 2020 –IFC, a member of the World Bank Group, today issued a new Canadian dollar (CAD) global benchmark bond, attracting strong investor demand and raising CAD500 million to support a resilient recovery in developing and emerging markets, amid the COVID-19 health and economic crisis.
The five-year deal marks IFC’s first issuance in the CAD market this year. It follows a CAD750 million five-year green benchmark issued by IFC in September 2019. IFC’s last conventional bond issuance in Canadian dollars was also a five-year benchmark, totaling CAD500 million, launched in July 2018.
"We are pleased to be back in the market in Canada, in support of businesses and people’s livelihoods across the developing world as it is impacted by COVID-19,” said IFC Vice President and Treasurer John Gandolfo. “This trade, which drew interest from around the globe, underscores the continued support IFC has from the investor community, as the largest development institution focused exclusively on developing the private sector in emerging markets.”
This is IFC’s fourth benchmark issued in the public markets since the start of the new financial year on July 1 st , following a 5-year $2 billion bond in July and a 10-year $1 billion and a 5-year NZD400 million in the second half of August. These trades were well received in the market and highlight IFC’s nimbleness in responding to market movement and investor demand.
The new CAD benchmark pays a semi-annual coupon of 0.625%, priced with a spread of -4 basis points to CAD mid-swaps, equivalent to +34.2 basis points over CAN 0.5% 09/01/25. Joint lead managers for this transaction were BMO Capital Markets, RBC Capital Markets, and Scotiabank. Final books for the benchmark stood in excess of CAD560 million, excluding joint-lead manager interest, with a solid demand from high quality accounts.
“IFC has shown an impressive commitment to Canadian dollar markets, as this offering stands their third 5-year benchmark issued in as many years. This transaction drew strong demand from both domestic and international buyers looking for high quality CAD-denominated assets. Congratulations to the IFC team!” said Sean Hayes, Managing Director and Head of US Syndicate.
“IFC benchmarks are an event in any market and CAD was no exception as demonstrated by IFC’s tight pricing and broad distribution. Following on the heels of successful benchmarks in other currencies, IFC’s well-placed return to the Canadian market is testament to the quality of the credit and their consistent global approach to investor relations” Jigme Shingsar, Managing Director, RBC Capital Markets.
“Scotiabank is proud to support IFC’s 5-year CAD 500 million CAD Benchmark. With this transaction, IFC reinforced its commitment to the Canadian dollar market as well as its expanding domestic and global investor base. The transaction offered investors the opportunity to add a conventional bond from an issuer with a world leading ESG profile. The perfect timing of the new issue execution paved the way for a top-quality orderbook and a record new issue spread for a conventional CAD SSA Benchmark,” said Cesare Roselli, Global Head of SSA (Sovereign, Supranational, and Agency) Origination at Scotiabank.
Banks accounted for 62 percent of the orders, followed by central banks and other official institutions at 31 percent, and asset managers and insurance funds at 7 percent. About 51 percent of orders came from investors in Canada, 31 percent came from investors in Asia, 13 percent came from investors in Europe, and 4 percent from investors in the Americas, not including Canada.
Final Terms
Issuer:
International Finance Corporation (IFC)
Issuer rating:
Aaa/AAA (Moody’s/S&P)
Issue amount:
CAD500 million
Settlement date:
September 16, 2020
Coupon:
0.625%
Coupon payment dates:
Semi-annually on March and September 16, up to and including the Maturity Date, commencing on March 16, 2021
Maturity date:
September 16, 2025
Issue price:
99.520%
Denominations:
$1,000
ISIN:
CA45950KCV04
Listing:
Luxembourg Stock Exchange
Clearing system:
DTC, CDS, Clearstream, Euroclear (Primary Settlement: CDS)
Joint lead managers:
BMO Capital Markets, RBC Capital Markets, Scotiabank
Distribution Statistics
Type
Central Banks/Official Institutions: 31%              
Asset Managers/Insurance: 7%
Banks: 62%
Geography
Canada: 51%
Asia: 31%
Europe: 13%                
Americas (not including Canada): 4%
About IFC
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2019, we invested more than $19 billion in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org .
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