In fiscal year 2018, IFC raised $14 billion totaling 389 trades across 28 currencies—a record for IFC.
This was largely driven by continued active issuances through reverse inquiries as well as through trades in Japanese Uridashi market. Issuance of Medium Term Notes, mostly denominated in emerging market currencies, totaled over $2 billion.
Public markets contributed to more than 30 percent of IFC’s funding in FY18. In January 2018, IFC issued a 3-year $2 billion global benchmark bond at mid-swaps -1 basis points [bps], equivalent to 18.7 bps over U.S. Treasuries), sold to investors from the Americas (63 percent), EMEA (26 percent), and Asia-Pacific (11 percent). Earlier in the year, IFC issued a 5-year $1 billion benchmark green bond, which was 2.6 times oversubscribed.
In the Australian public market, IFC launched a new 5-year line maturing in March 2023—our inaugural social bond in the Kangaroo market—raising AU$ 300 million in March 2018. IFC also launched a new 15-year line maturing in August 2033, extending IFC’s Kangaroo curve.
In the New Zealand market, IFC launched a 10-year green bond earlier in FY18. The bond marked the first green bond ever issued in New Zealand, raising NZ$ 125 million.
In the retail space, total Uridashi volume of $1.4 billion set a record for two consecutive years, accounting for 10 percent of IFC’s overall issuance. IFC continued offering notes to U.S. retail investors through its Impact Note as well as Accelerated Return Note (ARN) retail programs. In October 2017, IFC came to the Italian retail market with structured green bonds.
Activity in Floating Rate Notes remained relatively subdued in FY18, continuing the trend from the previous year.
IFC continued strong issuance in the green space, raising over $715 million through 30 green bonds, including in Turkish lira and Swedish krona. As of June 2018, IFC has raised $7.6 billion through the issuance of 111 green bonds in 13 currencies.
IFC’s social bond issuance flourished particularly in Japan. Eleven out of 13 social bond transactions were sold into the Japanese market, including IFC’s first social bond in a private placement format as well as 10 Uridashi transactions. As of June 2018, IFC has raised $920 million through 16 social bonds and in six currencies.