IFC raises £1bn with its largest-ever sterling bond

The International Finance Corporation (IFC), a member of the World Bank Group, said it issued its largest-ever pound sterling benchmark bond, raising £1 billion to support private sector recovery in developing countries amid COVID-19.

The five-year bond, listed on the London Stock Exchange, was heavily oversubscribed, with banks comprising more than 50% of investors, central banks and official institutions more than 20%, asset managers more than 19% and pension funds/institutional investors more than 9%.

The proceeds of the bond will go to finance IFC investments in emerging markets. 

IFC invested $22 billion in fiscal 2020 in private companies and financial institutions in developing countries.

John Gandolfo, IFC Vice President and Treasurer said: “We are very happy to be back in the sterling market with our most substantial British Pound trade.

“This bond issuance signifies our effort to cater to pound sterling investors in support of private sector development and preserving  jobs — for an inclusive, resilient recovery in the most challenging markets.

“The five-year bond was exceptionally well received by investors with orders over 1.7 billion GBP …

“Investors came from across all regions, but the majority of the demand —66 per cent — came from UK-based investors.”

Lead managers were Merrill Lynch International, J.P. Morgan Securities plc, and Nomura International plc.