IFC Launches its USD Global Benchmark Issue, Raising $2 Billion to Support Private Sector in Developing Countries
Washington, D.C., January 18, 2018—IFC, a member of the World Bank Group, today issued a $2 billion global bond, highlighting its international leadership role as the largest development institution focused exclusively on growing the private sector in emerging markets.
The heavily oversubscribed issuance – the three-year benchmark bond generated an order book of $2.98 billion, and was IFC’s biggest US dollar debt offering since 2016 – indicated strong investor demand.
“The enthusiastic response from investors at the outset of 2018 is a testament to IFC’s pivotal position as the premier institution creating markets and opportunities in developing countries,” said Jingdong Hua, IFC Vice President & Treasurer.
“Thanks to IFC’s international triple-A credit rating and our standing as a premier global issuer, this $2 billion global bond will unlock financing for business and help create jobs in some of the most challenging and poorest countries – including for climate-smart business and women entrepreneurs”.
The reoffer yield was 2.352 percent—the equivalent of 18.70 basis points over the corresponding U.S. Treasury note. Central banks and other official institutions accounted for 52 percent of the orders, followed by banks at 22 percent. More than 60 percent of orders came from investors in the Americas.
The proceeds of this issue will be swapped into floating-rate U.S. dollar funds that will be available for IFC investments in emerging markets.
IFC has issued US dollar-denominated global bonds each year since 2000, and as a US dollar-based institution, most borrowings are swapped into variable-rate US dollars.
In addition, IFC complements its public issuance by accessing a variety of different markets such as Uridashi, private placements and thematic bonds like green bonds to support climate-smart business; and social bonds including for on-lending to women-owned enterprises or companies that incorporate people at the “Base of the Economic Pyramid” or “BOP”. IFC also issues local-currency bonds to develop local capital markets and to fund local-currency investments, and discount notes in U.S. dollars. All IFC bond issuances are rated triple-A by Standard & Poor’s and Moody’s.
Issuer: IFC (International Finance Corporation)
Type: Global (SEC Exempt)
Amount: US$2 billion
Pricing date: January 18th, 2018
Settlement date: January 25th, 2018
Maturity date: January25th, 2021
Issue price: 99.706%
Reoffer Yield: 2.352%
Denomination: USD $1000
Underwriters: BofA Merrill Lynch, Citi, J.P. Morgan, TD Securities
Distribution by Geography (%)
Asia Pacific (11%)
Distribution by Investor Type (%)
Central Bank/Official Institution: (52%)
Fund Managers (17%)
Insurance/Pension Funds: (9%)
IFC, a sister organization of the World Bank and a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In FY17, we delivered a record $19.3 billion in long-term financing for developing countries, leveraging the power of the private sector to help end poverty and boost shared prosperity. For more information, visit www.ifc.org
Inquiry and contact information
IFC International Finance Corporation