In FY21, IFC raised $12.7 billion from 228 trades across 26 currencies. IFC remained resilient and led the public markets through a tumultuous pandemic recovery process, while continuing to accommodate reverse inquiries across currencies. Borrowings in the public markets in currencies such as United States Dollar (USD), Australian dollar (AUD), New Zealand dollar (NZD), Canadian dollar (CAD), and British Pound sterling (GBP) accounted for 78% of the funding program in FY21.
In the 1st quarter of FY21, IFC moved quickly to capitalize on the strong tone in primary markets with the issuance of a 5-year USD 2 billion 0.375% global benchmark bond priced with a spread of +10 bps to mid-swaps, equivalent to +13 bps over the US Treasury Note due June 2025. The deal attracted IFC’s largest-ever orderbook of USD 6bn+ and, at the time, priced at the tightest mid-swap spread for a 5-year USD benchmark since the start of the pandemic.
IFC continued to access the USD primary markets with a second global benchmark issuance in August 2020: a 10-year USD 1 billion 0.750% bond, priced with a spread of +18 bps to mid-swaps, equivalent to +17 bps over the corresponding U.S. Treasury note of 0.625% due August 2030. Also in August, IFC kicked off its first issuance in the Kauri market in FY21 with a 5-year NZD 400 million benchmark.
In September 2020, IFC entered the Maple market for the first time in FY21 with a 5-year CAD 500 million 0.625%benchmark bond.
In the Sterling market, IFC issued a 5-year GBP 1 billion benchmark bond in October 2020, which marked its largest-ever pound sterling bond. The trade was exceptionally well received by investors with orders over GBP 1.7 billion.
In the 2nd half of the fiscal year, in February 2021, IFC issued its debut bond swapped to the new Secured Overnight Financing Rate (SOFR) benchmark interest rate. The AUD 155 million Kangaroo social bond 'tap' increased the total raised by the initial trade to AUD 800 million (USD 609 million).
Then, in June 2021, IFC ended FY21 on a high note with its inaugural SOFR bond, a 2-year USD 1 billion global benchmark bond. The transaction was priced at par with a quarterly floating coupon of SOFR + 9 bps due June 2023 and was anchored by orders primarily from the Americas and Europe.
Through its sustainable bond programs, IFC issued 6 green bonds for a total volume of over USD 165 million, and 24 social bonds for a total volume of over USD 762 million.
IFC issued over USD 9 billion under its Global Discount Note Program, which offers notes with maturities up to 360 days.
Read more FY21 Treasury highlights in IFC’s Annual Newsletter for bond investors here.