In FY19, IFC raised $11.2 billion from 304 trades across
28 currencies. Despite volatility in emerging markets and U.S. dollar strengthening, IFC remained an active issuer in public markets and accommodated reverse inquiries which accounted for nearly a third of total issuances
IFC kicked off FY19 with a five-year $2 billion global bond in July 2018. The bond was priced at mid-swaps +2bps, the tightest pricing at the time for a five-year USD SSA trade in 2018, and equivalent to 15.25bps over U.S. Treasuries.
Borrowings in public markets such as Australian dollar (AUD), Canadian dollar (CAD), British pound (GBP) and US dollar (USD) accounted for 47% of the overall funding program: FY19 brought about IFC’s first Sterling green bond, a five-year British pound 350 million bond. Soon afterwards, a five-year CAD 500 million bond marked IFC’s return to the Maple market. In the Australian markets, IFC launched a new long ten-year line maturing in June 2029, and later tapped its Kangaroo social bond by AUD 400 million. In the New Zealand market, IFC launched a five-year New Zealand dollar 600 million bond.
IFC’s continued its leadership role as a sustainable bonds issuer. In FY19, IFC issued 37 green bonds in eleven currencies for a total volume of over $1.6 billion, and 12 social bonds for a total volume of $538 million. IFC’s social bonds particularly flourished in Japan: ten social bonds were sold into the Japanese market, mostly as Uridashi transactions.
As for floating rate notes (FRN), IFC entered the Sterling Overnight Index Average (SONIA) bond market for the first time in January 2019, raising GBP 500 million. Activity in the USD LIBOR FRN remained subdued in FY19 on the back of the expected LIBOR sunset by 2021.
In the retail market, Uridashi issuance remained active with $1.1 billion in total volume raised. IFC continued offering notes to U.S. retail investors through its Impact Note and Accelerated Return Note Programs.
Read more FY19 Treasury highlights in IFC’s Annual Newsletter for bond investors here.