IFC Home
Creating Opportunity Where It's Needed Most

IFC Begins $18 Billion Fund-Raising Effort for FY15 by Issuing $3 Billion Bond for Private Sector Development


In Washington, D.C.:
Josef Skoldeberg
Communications Officer
Phone: +1 (202) 473-6978
E-mail: jskoldeberg@ifc.org

Matthew Morrison
Head of Investor Relations
Phone: +1 (202) 473 1641
E-mail: mmorrison@ifc.org

Washington, D.C., July 2, 2014—IFC, a member of the World Bank Group, today issued a $3 billion five-year bond as part of a program that aims to raise up to $18 billion over the next year to support private sector development in some of the world’s most challenging markets.

The five-year global bond—denominated in U.S. dollars—generated an order book of over $3.6 billion and set the pricing benchmark for IFC’s borrowing program for the fiscal year ending June 30, 2015.  The borrowing program supports nearly all of the financing IFC provides to private enterprises in developing countries.

“These funding operations are crucial to IFC’s success as a self-financing development institution,” said Jingdong Hua, IFC Vice President and Treasurer.  “They help ensure that we remain financially sustainable, using our triple-A credit rating to borrow funds at the lowest market rates and deliver them to our clients in developing countries.”

By June 30, 2015, IFC plans to raise $18 billion across a range of markets and currencies.  IFC issues bonds in a variety of markets—including 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.  In addition, it issues thematic bonds that support specific areas such as climate change and local-currency bonds to develop local capital markets.

Consistent with IFC’s practice, the proceeds of the latest bond issuance 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.

The transaction was lead managed by Bank of America, Merrill Lynch, BNP Paribas, JP Morgan, and Nomura.

IFC Global Bond Summary Terms and Conditions

Issue amount                $ 3,000,000,000.00
Pricing date                 July 2, 2014
Payment date              July 10, 2014
Maturity date                September 16, 2019
Re-offer price               99.587%
Re-offer yield                1.834%
Semi-annual coupon         1.75%
Re-offer spread                Mid-swaps + 1 basis point, equivalent to 14.25 basis points over U.S. Treasuries        
Format                        GMTN
Listing                        Luxembourg

IFC Global Bond Distribution of Orders

By Geographic Region      
Americas                                           21%
Asia-Pacific                                      32%
EMEA                                               47%  

By Investor Type        
Banks and Corporates                       47%
Central Banks and Official Institutions        48%
Fund Managers                                  6%

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
 
Stay Connected
www.facebook.com/IFCwbg
www.twitter.com/IFC_org
www.youtube.com/IFCvideocasts
www.ifc.org/investors