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IFC, a member of the World Bank Group, issued a new US dollar global benchmark bond, raising $2 billion to support private businesses in developing countries.

Support for the new five-year benchmark was strong and the trade attracted orders over $3.95 billion.

“The strong and diverse interest in the first benchmark of our financial year is testament to IFC’s financial strength and our position in the market as the premier global institution focused on the private sector in developing countries,” said John Gandolfo, IFC Vice President and Treasurer, Treasury & Mobilization. “The constructive market backdrop presented a good window of opportunity to access the US dollar market ahead of summer, and the five-year maturity matches well with our funding requirement for the year ahead.”

Joint lead managers for this transaction were BMO, BofA Securities, JP Morgan and Nomura.

“Congratulations to the IFC team on achieving an immensely successful result for its annual US dollar benchmark outing. The high-quality and granular nature of the orderbook, in excess of $3.95 billion, is a testament to the depth and strength of investor demand for the IFC credit. IFC has once again displayed its expertise in assessing market conditions in the timing of this transaction to take advantage of current strong market momentum,” said Kamini Sumra, Managing Director, SSA Origination, BofA Securities.

“Congratulations to the IFC team on a successful 2023 return to the US dollar market. IFC took advantage of a clear window post the 4th of July holiday to price a new five-year benchmark. Despite a challenging macro backdrop, IFC garnered orders in excess of $3.95 billion, which is testament to the high confidence investors have in IFC’s name. We are delighted to be involved in this landmark transaction,” said Sarah Lovedee, Executive Director, Head of Supranational DCM, J.P. Morgan.

“What a way for the International Finance Corporation to start their new fiscal year; the outstandingly strong five-year $2 billion transaction garnered an exceptionally high quality and granular order book, showcasing the depth and breadth of IFC’S global investor following. The continued investor work that IFC diligently pursues, continues to attract the who’s who of the SSA investor community into their order books. Nomura was delighted to have been involved in the transaction and wishes the IFC well on the rest of the funding year,” said Conrad Baker, Managing Director, Head of SSA Syndicate, Nomura.

“The holiday-shortened week did not stop global investors from engaging in the rare IFC US dollar benchmark opportunity. IFC’s best-in-class credit shined, highlighted by pricing through its closest AAA rated peers’ outstanding five-year bonds. BMO was thrilled to have been involved as IFC jumpstarts its new fiscal year in impressive fashion with its first five-year benchmark in nearly two years,” said Sean Hayes, Managing Director & Head of US Syndicate, BMO.

IFC has issued US dollar-denominated global bonds each year since 2000. In addition, IFC complements its public issuance by accessing a variety of different markets, including through private placements and thematic bonds, such as green bonds to support climate-smart business, and social bonds that fund IFC projects to help underserved people in developing countries with limited access to essential services. IFC also issues local-currency bonds to develop local capital markets and fund local-currency investments. All IFC bond issuances are rated triple-A by Standard & Poor’s and Moody’s.

Photo courtesy of Bill Oxford.