IFC raises virtually all of the funds for its lending activities through the issuance of debt obligations in the international capital markets. Borrowings are diversified by country, currency, source and maturity in order to provide flexibility and cost effectiveness. A consistent triple A credit rating based on conservative policies and excellent financial performance has assisted in building significant and distinct name recognition in the market place for the IFC.
The funding group within IFC Treasury focuses on two key goals throughout the fiscal year:
To raise and secure funds to attain the Corporation’s annual funding target.
To stimulate growth in emerging markets by issuing bonds in local currency.
The strategy for achieving these goals has been built on three pillars:
Issue a liquid US$ global benchmark bond;
Access public and private bond markets; and
Promote development of emerging capital markets by borrowing in local currencies.
The IFC has won the "EuroWeek’s 2002 Supranational Bond of the Year (pdf)" award for its consistent issuance strategy of annual US dollar global benchmark bonds. In fiscal year 2009, the funding team borrowed US$8.0 billion equivalent in 7 different currencies: Australian Dollar, Brazilian Real, Canadian Dollar, Japanese Yen, South African Rand, Turkish Lira and US dollars. The funding team also participates in a buyback program to enhance the liquidity of all outstanding bond issues.
As part of its development agenda, IFC has been the first supranational borrower in several markets, such as the Colombian peso, Israel shekel, Estonian kroon, Russian rouble, Singapore dollar and Peruvian soles markets. This commitment has been recognized through the "IFR 2007 Awards," "Latin Finance Award 2004" and "Emerging markets Award 2004." In 2005, IFC pushed on further with this strategy and issued the first domestic supranational deals in China, Malaysia and Morocco. IFC is very focused on exploring further opportunities to assist in the development of local securities markets.