Washington, D.C., October 6, 2020 —IFC, a member of the World Bank Group, has issued its largest-ever pound sterling benchmark bond, attracting strong investor demand and raising 1 billion pounds to support private sector recovery, and help sustain companies and livelihoods in developing countries amid COVID-19.
The five-year bond, listed on the London Stock Exchange, was heavily oversubscribed, with banks comprising more than 50 percent of investors, central banks and official institutions more than 20 percent, asset managers more than 19 per cent, and pension funds/ institutional investors more than 9 per cent. The proceeds of the bond will go to finance IFC investments in emerging markets.
John Gandolfo, IFC Vice President and Treasurer said: “We are very happy to be back in the sterling market with our most substantial British Pound trade. This bond issuance signifies our effort to cater to pound sterling investors in support of private sector development and preserving jobs—for an inclusive, resilient recovery in the most challenging markets. The five-year bond was exceptionally well received by investors with orders over 1.7 billion GBP.”
“Investors came from across all regions, but the majority of the demand—66 per cent—came from UK-based investors,” Gandolfo added.
The 1 billion-pound benchmark marks IFC’s first sterling-denominated trade since February 2020, when IFC issued a seven-year 350 million GBP bond.
Lead managers were Merrill Lynch International, J.P. Morgan Securities plc, and Nomura International plc.
IFC Sterling Bond Terms
Issuer: IFC (International Finance Corporation)
Amount: GBP 1 billion
Pricing date: 6 October, 2020
Settlement date: 13 October, 2020
Maturity date: 15 December, 2025
Issue price: 99.958%
Reoffer Yield: 0.258% semi-annual/ 0.257% annual
Coupon: 0.25%
Listing: London Stock Exchange
Lead Managers: Merrill Lynch International, J.P. Morgan Securities plc, and Nomura International plc.
Distribution by Geography (%)
UK (66%)
Europe ex. UK (16.4%)
Asia (12.5%)
Americas (5.1%)
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2020, we invested $22 billion in private companies and financial institutions in 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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