IFC Issues $2 Billion Social Bond to Fund Diverse Social Projects, Focusing on Vulnerable and Underserved Populations

Washington, D.C., January 15, 2026 –The International Finance Corporation (IFC), a member of the World Bank Group, issued a three-year social bond, raising $2 billion to support low-income communities in emerging markets.

After the deal was announced on Tuesday, the orderbook grew steadily and continued to attract strong demand the following day. Final orders exceeded $5.4 billion, 2.7 times the issue size. The book comprised high-quality global investors, with central banks and official institutions taking the largest share of allocations at 63 percent.

"IFC’s first benchmark of 2026 attracted strong and diverse interest, which underscores the depth of investor confidence in IFC,” said Jorge Familiar, World Bank Group Vice President and Treasurer. “Proceeds of the social bond will expand funding for private sector projects that support vulnerable communities, including those with limited access to essential services such as healthcare, sanitation, and education.”

Daiwa, Goldman Sachs, Scotiabank, and SEB acted as joint lead managers for the transaction.

"Many congratulations to the IFC team on a great return to the US dollar market this year, which at an equivalent spread of 3.74 basis points over US Treasuries represents a new record for IFC, facilitated by a high quality orderbook and reaffirming IFC's excellent credit quality and global investor appeal. Daiwa was delighted to have been involved in this very successful transaction," said Helene Mercelat, Co-Head DCM (Debt Capital Markets), Daiwa Capital Markets.

“Congratulations to the IFC team on their first dollar benchmark of 2026! Robust orderbook dynamics enabled IFC to reach the tightest spread level to Treasuries of deals in 2026 and is a reflection of IFC’s strong credit quality as well as the excellent global investor support that they command," said Dorothee Amar, Co-Head of SSA (Sovereign, Supranational, and Agency), Goldman Sachs.

“Congratulations to the IFC team on a successful return to the US dollar market with a three-year $2 billion social benchmark issuance. The combination of healthy oversubscription and tight spread level to the US Treasury funding curve is a testament to IFC’s strong investor following and credit in the SSA market. Scotiabank was pleased to be involved in this transaction,” said Cesare Roselli, Global Head of SSA Origination at Scotiabank.

“Congratulations to the IFC team on this outstanding achievement. Tightening the spread by four basis points in a crowded and competitive market, with a strong orderbook from a broad base of global investors, is a clear endorsement not only of IFC’s well-established standing in the international capital markets, but also of its continued leadership in advancing and shaping the social bond market. SEB is proud and delighted to have been part of the team supporting this transaction,” said Axel Zetterblom, SSA Origination, SEB.

Proceeds from IFC’s social bonds fund a diverse range of social projects which include: affordable basic infrastructure (e.g. clean drinking water, sewers, sanitation, transport, energy); access to essential services; affordable housing; women-owned small and medium sized businesses who lack access to finance; and companies that incorporate people at the "base of the economic pyramid" into their value chain; as well as food security.

IFC is a frequent issuer of social bonds in public and private markets, in various currencies and tenors.

IFC Social Bond Terms

Distribution Statistics

Type

Central Banks/Official Institutions: 63%            

Bank Treasuries/Banks/Private Banks: 24%

Asset/Fund Managers: 9%

Pension Funds/Insurers/Corporates: 4%

Geography

Europe, Middle East, Africa: 43%

Americas: 36%        

Asia Pacific: 21%