In FY20, IFC raised $11.3 billion from 217 trades across 29 currencies. In a year dominated by extreme market volatility, IFC remained an active issuer in public markets and continued to accommodate reverse inquiries across multiple currencies.
IFC launched its funding year with a five-year AUD 750 million bond in July 2019, offering a 1.45% semi-annual coupon. Subsequently, IFC returned to the Kauri bond market with a 5-year NZD 600 million bond offering 2.625% and over the course of the financial year, issued in the public Kangaroo and Kauri markets 18 times. In April, IFC issued a 15-year AUD 200 million social bond, making IFC the first issuer to bring a sustainable bond line to the Kangaroo market in 2020. IFC also returned to the Sterling market with a 7-year GBP 350 million bond in February.
FY20 proved a year of benchmark milestones. In September 2019, IFC issued its largest ever CAD-denominated deal with a 5-year CAD 750 million green bond – its debut green bond in the CAD market. The following month, in the USD market, IFC issued a 5-year $2 billion global benchmark bond , priced at mid-swaps +11bps and equivalent to 8.9bps over U.S. Treasuries.
As a result of the global coronavirus pandemic, IFC issued its largest ever social bond to date in March 2020 on the back of IFC’s COVID-19 response package. The social bond, a 3-year $1 billion global benchmark bond, was priced at mid-swaps +13bps and equivalent to 4.4bps over U.S. Treasuries.
Borrowings in the public markets in various currencies such as Australian dollar (AUD), New Zealand (NZD), Canadian dollar (CAD) and British pound (GBP) accounted for 57% of the overall funding program for the year.
IFC’s continued its leadership role as a sustainable bonds issuer. In FY20, IFC issued 24 green bonds in nine currencies for a total volume of over $1.2 billion, and 11 social bonds for a total volume of $1.6 billion. IFC’s sustainable bonds were particularly in demand in the Scandinavian market, denominated in Swedish krona (SEK) and Norwegian krona. Additionally, IFC also issued its first euro denominated 40-year green NSV bond in response to demand from German investors for long-dated green bonds.
Read more FY20 Treasury highlights in IFC’s Annual Newsletter for bond investors here.