Washington D.C., October 8, 2019 —IFC, a member of the World Bank Group, today issued a new US dollar global benchmark bond, raising $2 billion to support the private sector in developing countries – including for women entrepreneurs, infrastructure and climate-smart business in some of the most challenging markets.
The heavily oversubscribed issuance – the five-year benchmark bond generated an order book of over $3 billion – highlighted IFC’s international leadership role as the largest development institution focused exclusively on growing the private sector in emerging markets.
“The robust investor response to IFC’s USD global benchmark is a testament to our triple-A credit rating and standing as a premier global issuer,” said IFC Vice President & Treasurer John Gandolfo.
“This $2 billion global bond will support our mission of poverty alleviation and shared prosperity, which are inextricably linked to the Sustainable Development Goals.”
The reoffer yield was 1.436 percent—the equivalent of 8.9 basis points over the corresponding U.S. Treasury note. Central banks and other official institutions accounted for 61 percent of the orders, followed by banks at 33 percent. Approximately 23 percent of orders came from investors in the Americas.
The proceeds of this issue will be swapped into floating-rate U.S. dollar funds that will be available for IFC investments in emerging markets.
IFC has issued US dollar-denominated global bonds each year since 2000, and as a US dollar-based institution, most borrowings are swapped into variable-rate US dollars.
In addition, IFC complements its public issuance by accessing a variety of different markets such as Uridashi, private placements and thematic bonds like green bonds to support climate-smart business; and social bonds including for on-lending to women-owned enterprises or companies that incorporate vulnerable populations. IFC also issues local-currency bonds to develop local capital markets and to fund local-currency investments, and discount notes in U.S. dollars. All IFC bond issuances are rated triple-A by Standard & Poor’s and Moody’s.
Final Terms
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Issuer
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International Finance Corporation (IFC)
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Rating
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Aaa (stable) / AAA (stable) (Moody’s / S&P)
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Issue Amount
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US$ 2,000,000,000
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Pricing Date
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October 8 th , 2019
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Settlement Date
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October 16 th , 2019 (T+5)
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Maturity Date
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October 16 th , 2024
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Re-Offer Price/Yield
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99.707% / 1.436% s.a.
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Coupon
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1.375% (semi-annual, 30/360)
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Re-offer vs. mid-swaps
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11bps
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Re-offer vs. Benchmark
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UST 1.5% due September 2024 + 8.9bps
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Joint Bookrunners
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Citi, J.P. Morgan, Nomura, TD Securities
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Distribution Statistics
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Investor Type
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Geography
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||
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Central Banks/Official Institutions
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61%
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EMEA
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47%
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Banks
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33%
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Asia
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30%
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AM/Pension/Insurance
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6%
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Americas
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23%
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About IFC
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities where they are needed most. In fiscal year 2019, we delivered more than $19 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org .
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