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IFC Global Bond Raises $3.5 Billion for Private Sector Development, Marking Largest Issue to Date


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Alexandra Klopfer              
Communications Officer        
Phone: +1 202 473-4645        
E-mail:
aklopfer@ifc.org
 
Matthew Morrison

Head of Investor Relations

Phone:  +1 202 473 1641

E-mail:  
mmorrison@ifc.org


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 Basel II.

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 loans.  

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 bps

Format        GMTN

Listing        Luxembourg


IFC Global Bond Distribution of Orders


By Geographic Region      
Americas        12%

Asia                48%

EMEA                40%  


By Investor Type

Banks & Corporates        26%

Central Banks & Official Institutions        64%

Fund Managers        10%

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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