Washington, D.C./Boca Raton, Fl, March 10, 2014
—IFC, a member of the World Bank Group, and Incapital LLC, a leading underwriter and distributor of financial products, are launching a new program that for the first time allows U.S. individual investors to buy triple-A rated IFC bonds and support private sector development in emerging markets.
The new financial instrument, known as IFC Impact Notes, is an alternative to securities issued by Government Sponsored Enterprises, or GSEs. IFC Impact Notes have the potential to offer more attractive yields than U.S. Treasuries with equivalent maturities.
“U.S. institutional investors have consistently participated in IFC bond issuances, and this is an opportune time for us to launch a program that introduces us to individual investors,” said IFC Vice President and Treasurer Jingdong Hua. “As U.S. investors become more familiar with our value proposition, we anticipate that IFC Impact Notes will grow to become an important component of our overall funding program.”
Chris O'Connor, Incapital's Managing Director and Head of Capital Markets, said: “We anticipate that IFC Impact Notes will fill a market gap where we have seen a limited supply of the highest rated issuers. Incapital is pleased to partner with IFC in launching their innovative Impact Notes program serving a new market niche."
IFC raises funds in the global capital markets to support its lending in emerging markets. Focusing on the private sector, IFC invests to support job creation, access to health care, education, food, infrastructure, and finance, and other development priorities. IFC’s current annual funding program is $16 billion across a range of markets and currencies, with U.S. dollar borrowings accounting for most of the funding activity. IFC Impact Notes will be denominated in U.S. dollars.
IFC has been rated triple-A since its first rating in 1989.
IFC Impact Notes Terms and Conditions
The first offering of IFC Impact Notes are five-year, non-call 6-month step up callable notes with an initial coupon of 1.125%. The maximum coupon on the note will be 4.00%.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in more than 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and promote shared prosperity. In FY13, our investments climbed to an all-time high of nearly $25 billion, leveraging the power of the private sector to create jobs and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org
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