Adriana Gomez
Phone: (202) 458 5204
Email: Agomez@ifc.org


WASHINGTON, D.C., April 25, 2006–The International Finance Corporation, the private sector arm of the World Bank Group, today launched a five-year, $1 billion issue under its Global Medium Term Note program. The notes, which have a final maturity of May 2, 2011, carry a coupon rate of 5.125 percent per year (payable semi-annually).  The bonds were priced today to yield 29 basis points over the benchmark U.S. Treasury bond.  The proceeds of the issue will be swapped into floating rate U.S. dollar funds for IFC’s general operational purposes.

The joint lead managers are BNP Paribas and HSBC.  Co-lead Managers are ABN Amro, Citigroup, Daiwa Securities, JP Morgan, Mizuho, Nomura, and UBS.  This is the seventh successive year that IFC has launched a global U.S. dollar benchmark issue.  For fiscal year 2006 (ending June 30), IFC has a planned borrowing program of up to $2.0 billion equivalent. IFC’s long-term debt is rated triple-A by both Standard & Poor’s and Moody’s Investors Service.

The issue was oversubscribed and placed with over 50 high-quality accounts globally.  Asia accounted for 35 percent of the placement; North America, for 30 percent; and Europe, the Middle East, and Africa for 35 percent.  IFC achieved its strategic objectives of balanced global distribution at pricing compared to the sovereign and supranational peer group.

IFC Vice President, Finance and Treasurer Nina Shapiro said, “IFC was especially delighted with the market reception for this transaction, given changing market conditions and a more cautious investment outlook.”  A consistent issuance strategy resulted in broad global distribution. Ms. Shapiro added that investors clearly appreciate the care the IFC takes in marketing, executing, and supporting annual benchmark issues.

IFC’s annual US dollar global bond offering represents a key element of the Corporation’s overall funding strategy.  The objective is to provide a market benchmark for the IFC both in terms of other borrowings, and in structured finance for its clients. IFC also actively pursues borrowings in emerging market currencies to promote local capital markets.

The mission of IFC (www.ifc.org) is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY05, IFC has committed more than US$49 billion of its own funds and arranged US$24 billion in syndications for 3,319 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY05 was US$19.3 billion for its own account and US$5.3 billion held for participants in loan syndications.