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Washington, D.C., September 8, 2022 – IFC, a member of the World Bank Group, issued a new US dollar global benchmark bond, raising $2 billion to unlock private investment in emerging markets and developing economies.
Support for the transaction was strong and the final order book closed at over $4.9 billion with over 100 investors.
"The extremely enthusiastic interest from investors is a testament to IFC's financial strength and our position as the premier development finance institution focused on the private sector in developing countries," said John Gandolfo, IFC Vice President and Treasurer, Treasury & Mobilization. "Proceeds from the bond will unlock financing for businesses and help create jobs as developing countries grapple with multiple overlapping challenges—from surging food and energy prices to war and fragility." The new three-year benchmark, which pays a semi-annual coupon of 3.625 percent, was priced with a spread of SOFR MS+25 basis points, equivalent to +12.5 basis points over the corresponding three-year US Treasury note. Joint lead managers for this transaction were Citi, Morgan Stanley, TD Securities, and Wells Fargo Securities. "An outstanding result again for IFC in the capital markets! Taking advantage of the strong USD SSA primary market post-summer, the new three-year benchmark was over 2.4 times oversubscribed, with a highly diversified and high quality final orderbook. Through consistent excellence in execution, IFC have managed to ensure that their annual global outing captures the broadest investor attention. Congratulations to the IFC team, Citi is delighted to have been part of this transaction," said Ebba Wexler, Managing Director, Public Sector DCM, Citi.
"A tremendous return to the USD benchmark market for IFC, amassing significant demand and achieving an excellent pricing outcome despite the ongoing volatility and challenging wider market conditions. With this trade, IFC has reaffirmed their benchmark product as a core USD asset, highly valued by investors globally. Congratulations to the IFC team," said Ben Adubi, Head of SSA, Morgan Stanley.
"Well done to the IFC team for the stellar outcome of their three-year USD benchmark transaction. IFC attracted demand from the full SSA universe for their first USD benchmark of their new fiscal year. The three-year maturity enabled IFC to capture demand from investors that are more comfortable in the front-end of the curve during a volatile year for fixed income markets. The robust demand for IFC's name enabled IFC to engage in successful price discovery and tighten by three basis points from IPTs [initial price thoughts]," said Laura O'Connor, Managing Director, Fixed Income Origination & Syndication, TD Securities.
"WFS is delighted to be part of IFC's first USD benchmark for their current funding year. Good timing and strong demand, together with the issuer's rarity value and global reach, translated into a high-quality order book with a large oversubscription. Furthermore, the transaction joins a select group of issues this year that priced three basis points tighter than IPTs. Congratulations to the IFC team for the resounding success of this global benchmark," said Carlos Perezgrovas, Head SSA Origination, Wells Fargo Securities.
IFC has issued US dollar-denominated global bonds each year since 2000. In addition, IFC complements its public issuance by accessing a variety of different markets, including through private placements and thematic bonds, such as green bonds to support climate-smart business, and social bonds that fund IFC projects to help underserved people in developing countries with limited access to essential services. IFC also issues local-currency bonds to develop local capital markets and fund local-currency investments and discount notes in U.S. dollars. All IFC bond issuances are rated triple-A by Standard & Poor's and Moody's.
Final Terms and Conditions for the new bond: | Issuer | International Finance Corporation (IFC) | | Rating | Aaa (stable) / AAA (stable) (Moody's / S&P) | | Issue Amount | US$ 2,000,000,000 | | Pricing Date | September 7, 2022 | | Settlement Date | September 15, 2022 | | Maturity Date | September 15, 2025 | | Re-Offer Price/Yield | 99.961% / 3.639 % s.a. | | Coupon | 3.625% (semi-annual, 30/360) | | Re-offer vs. SOFR Mid-swaps | +25bps | | Re-offer vs. Benchmark | UST 3.125% due August 15, 2025 +12.5bp | | Documentation | Issuer's Global Medium-Term Note Program | | ISIN | US45950KDA51 | | Joint Bookrunners | Citi, Morgan Stanley, TD Securities, Wells Fargo Securities |
Distribution Statistics:
| Central Banks/Official Institutions | 60% | | Banks | 27% | | AM/Corporates/Other | 13% | | Geography | | | Americas | 56% | | Europe, Middle East, Africa | 32% | | Asia Pacific | 12% |
About IFC
IFC — a 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 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
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