Washington, D.C., August 27, 2013—IFC,
a member of the World Bank Group, today issued a $3.5 billion, five-year
global bond—its largest to date—as part of its regular program of raising
funds for private sector development lending.
The issue generated an order book of close to $5 billion and set the pricing
benchmark for IFC’s FY14 borrowing program.
“IFC’s funding operations are at the core of our business. They enable
us to meet the financing needs of private sector companies in emerging
markets, and provide IFC with sufficient liquidity to fulfill our counter-cyclical
role in a fragile global economy,” said Jingdong Hua, IFC VP and Treasurer.
“IFC’s priority is to support a vibrant, sustainable private sector that
contributes to eradicating extreme poverty and pursuing shared prosperity
in emerging markets and globally.”
Consistent with IFC’s practice, the proceeds of this issue will be swapped
into floating-rate U.S. dollar funds that will be available for IFC investments
in emerging markets. IFC has issued dollar-denominated global bonds
each year since 2000. All IFC bond issuances are rated triple-A by Standard
& Poor’s and Moody’s. IFC debt receives a zero risk weighting under
Wolfgang Meyer, IFC Director for Treasury Market Operations, said: “The
strong demand for IFC’s global bond in a difficult market environment
reflects our strong reputation as a committed issuer in the capital markets.
The success of the issue leaves us well-positioned as we seek to meet IFC’s
largest funding program to date.”
The transaction was lead managed by Daiwa, Deutsche Bank, HSBC, and TD.
IFC plans to raise $16 billion across a range of markets and currencies
during its current fiscal year ending June 30, 2014. Borrowings denominated
in U.S. dollars account for the majority of IFC’s funding program. Other
funding sources include the Australian-dollar Kangaroo market, the U.S.
domestic market, and the Japanese market. IFC also issues discount notes
in U.S. dollars and in the offshore renminbi market, thematic bonds that
support specific areas such as climate change or microfinance, and local
currency bonds to develop local capital markets and to fund local currency
IFC Global Bond Summary Terms and Conditions
Issue amount US$ 3,500,000,000.00
Pricing date August 27, 2013
Payment date September 4, 2013
Maturity date September 4, 2018
Re-offer price 99.952%
Re-offer yield 1.76%
Semi-annual coupon 1.75%
Re-offer spread MS + 2 / US Treasury +21.10
IFC Global Bond Distribution of Orders
By Geographic Region
By Investor Type
Banks & Corporates 26%
Central Banks & Official Institutions 64%
Fund Managers 10%
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