Debt Securities and B Bonds

Debt Securities

IFC supports firms seeking to access global capital markets through the issuance of debt securities, helping them reach new investors. In more developed markets, IFC mobilizes institutional and impact investors for private placements, including green, social and project bonds.

In less developed markets, IFC primarily connects borrowers with local and regional financial institutions and international impact investors through plain-vanilla private placements. Where needed, IFC also structures other debt securities—such as diversified payment rights and non-convertible debentures—to comply with local regulations and mobilize more private investors.

How It Works

IFC helps issuers access capital markets through advisory services, including structuring of first-time green and social bonds, and may invest directly as an anchor investor. In selected cases, IFC can mobilize third-party investors alongside its own investment to deliver a comprehensive private placement solution—particularly for issuers that do not require a formal arranger. 

Benefits to Investors

• Access to unique fixed-income investment opportunities through IFC’s global borrower network.
• Ability to participate alongside IFC in negotiating terms from term sheet to final documentation.
• Opportunity to support first-time issuers and first-time green or social bonds.

Benefits to Borrowers

• Supports borrower “graduation” from loan-based financing to fundraising via capital markets.
• Access to IFC’s global debt securities structuring expertise, including green and social bonds.
• Leverages IFC’s broad global partner network to identify co-investors and secure their participation without the need for an arranger.

B Bonds

IFC uses B Bonds to help clients access capital markets and mobilize private capital for high-impact projects. B Bonds attract institutional investors into IFC-originated transactions and complement existing mobilization products such as Debt Securities Syndications (DSS) and B Loans.

B Bonds offer syndications partners access to rated debt securities while enabling borrowers to secure longer-tenor financing. The product also creates new opportunities for thematic financing, including sustainability-linked finance, and supports broader efforts to deepen capital markets.

How it works

A B Bond is funded through the sale of securities in the capital markets, following the A/B Loan Structure. A special purpose vehicle (SPV) is established to serve as the sole B Lender and purchases all — or a portion — of IFC’s B Loan.

One or more bookrunners structure and place the B Bond, which is issued by the SPV to private investors. By retaining the A Loan on its own balance sheet, IFC shares project risk with investors.

Benefits to Investors

• Expands the pool of assets for investors seeking long-term financing opportunities.
• Benefits from IFC’s privileges and immunities, and its strong relationships with the client’s host country.
• Provides access to investors that prefer or are regulated to invest only in rated debt securities.
• Enables participation in thematic financing opportunities.
• Offers enhanced credibility through IFC’s due diligence and stamp of approval.

Benefits to Borrowers

• Expands access to innovative financing and a broader pool of investors via capital markets.
• Offers the potential for longer tenors and/or larger volumes than typically available in the traditional loan markets.
• Simplifies financing administration, with IFC acting as the lender of record.
• Brings the advantages of IFC’s environmental and social standards and oversight.