IFC launches $2b five-year global bond to promote private businesses in developing countries
The International Finance Corporation (IFC) issued a new US dollar global benchmark bond, raising $2 billion to promote private businesses in developing countries. The new five-year standard received substantial support, and the deal received orders totaling $3.95 billion.
“The strong and diverse interest in the first benchmark of our fiscal year is a testament to IFC’s financial strength and our market position as the premier global institution focused on the private sector in developing countries,” said John Gandolfo, IFC Vice President and Treasurer, Treasury & Mobilization. “The positive market backdrop provided a good window of opportunity to access the US dollar market ahead of summer, and the five-year maturity corresponds well with our funding requirements for the coming year.
BMO, BofA Securities, JP Morgan, and Nomura served as joint lead managers for this transaction. “Congratulations to the IFC team on a tremendously successful annual US dollar benchmark outing.” The orderbook’s outstanding quality and granularity, totaling more than $3.95 billion, demonstrates the depth and robustness of investor demand for IFC credit. “In the timing of this transaction to take advantage of current strong market momentum, IFC has once again demonstrated its expertise in assessing market conditions,” said Kamini Sumra, Managing Director, SSA Origination, BofA Securities.
“Congratulations to the IFC team on their successful return to the US dollar market in 2023.” IFC took advantage of a quiet period following the Fourth of July holiday to price a new five-year benchmark. Despite a tough macro background, IFC received orders in excess of $3.95 billion, demonstrating investors’ trust in the IFC brand. “We are honored to be a part of this historic transaction,” said Sarah Lovedee, Executive Director, Head of Supranational DCM at J.P. Morgan.
“What a way to kick off the International Finance Corporation’s new fiscal year; the outstandingly strong five-year $2 billion transaction drew an exceptionally high quality and granular order book, demonstrating the depth and breadth of IFC’s global investor following.” The ongoing investor work that IFC is pursuing is attracting the who’s who of the SSA investor world to their order books. “Nomura was delighted to be involved in the transaction and wishes the IFC all the best for the remainder of the funding year,” said Conrad Baker, Managing Director, Head of SSA Syndicate at Nomura.
Despite the holiday-shortened week, global investors took advantage of the rare IFC US dollar benchmark chance. IFC’s best-in-class credit shone through, as seen by pricing through the outstanding five-year bonds of its nearest AAA-rated rivals. “BMO was thrilled to be involved as IFC kicks off its new fiscal year with its first five-year benchmark in nearly two years,” said Sean Hayes, Managing Director & Head of US Syndicate, BMO.
Since 2000, IFC has issued worldwide bonds denominated in US dollars each year. Furthermore, IFC supplements its public issuance by entering a variety of markets, including private placements and thematic bonds, such as green bonds to support climate-smart business and social bonds to fund IFC projects to help underserved people in developing countries with limited access to essential services.
IFC also offers local-currency bonds to support the development of local capital markets and the funding of local-currency investments. Standard & Poor’s and Moody’s have assigned triple-A ratings to all IFC bond issuances.
