Washington, D.C., May 20, 2011—
IFC, a member of the World Bank Group, successfully returned to the Kauri market, launching a new five-year, 150 million New Zealand dollar ($120 million equivalent) medium-term note under its Global Medium-Term Note Program. The issue is part of IFC’s regular fundraising for private sector lending in emerging markets and marks the first appearance of a supranational in the Kauri market this year.
The transaction was announced at 8 a.m. Sydney time on Wednesday, May 18, with a price guidance of mid-swaps plus 30 basis points, and the order book built steadily over the course of the day. The books were left open overnight, allowing European and United States investors to participate and were finally closed at 9 a.m. Sydney time on Thursday, May 20.
The transaction size was set at 150 million New Zealand dollars, driven by key lead orders from central banks and real-money investors and priced in line with an initial price guidance of mid-swaps plus 30 basis points. The issue, which matures on May 25, 2016, and carries a semi-annual coupon of 4.625 percent, was priced to yield 4.6875 percent. The proceeds of this issue will be swapped into floating-rate U.S. dollar funds that will be available for IFC’s general operations.
Deutsche Bank was the sole arranger for this note.
Composition of demand for IFC Kauri issue:
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By Geographic Region
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By Investor Type
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Offshore - 86%
Domestic - 14%
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Banks - 51%
Fund Mangers - 30%
Central Banks - 19%
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About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory 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
.
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