IFC raises $3.5b from largest global bond issue

The International Finance Corporation (IFC) has raised an amount of $3.5 billion from a five-year global bond it issued on August 27, 2013.

The five-year bond, according to the private arm of the World Bank Group, is its largest bond issue to date.

Funds raised via the bond issue are to support private sector development lending.

“IFC’s funding operations are at the core of our business. They enable us to meet the financing needs of private sector companies in emerging markets, and provide IFC with sufficient liquidity to fulfill our counter-cyclical role in a fragile global economy,” said Jingdong Hua, IFC’s Vice President and Treasurer.

According to the IFC, the bond issue generated an order book close to $5 billion and set the pricing benchmark for IFC’s 2014 fiscal year borrowing programme.

The transaction was lead managed by Daiwa, Deutsche Bank, HSBC, and TD.

The IFC says it plans to raise $16 billion across a range of markets and currencies during its current fiscal year ending June 30, 2014.

By Ekow Quandzie