In a Bid to Support Private Investment in Emerging Markets in Africa, International Finance Corporation (IFC) has launched $2 billion five-year global bond

By Richard Adorsu-

Great Africa Map
Photo Credit: Creazille

NEW AFRICA BUSINESS NEWS (NABN) Accra GHANA- IFC, a member of the World Bank Group, issued a new US dollar global benchmark bond, raising $2 billion to support private businesses in Africa.

Support for the new five-year benchmark was strong and the trade attracted orders over $2.79 billion. The deal also attracted the tightest spread over US Treasuries for a five-year sovereign, supranational, and agency (SSA) bond this calendar year.

“We continue to see strong demand for our bonds from a diverse investor base, and this bond issue is no exception,” said John Gandolfo, IFC Vice President and Treasurer, Treasury & Mobilization. “Our bond issuances enable us to provide essential financing for private businesses
in emerging markets, helping to create jobs, alleviate poverty, and drive inclusive and sustainable economic growth.”

Joint lead managers for this transaction were BMO Capital Markets, J.P. Morgan, TD Securities and Wells Fargo Securities.

“IFC has kick-started its new fiscal year in IFC fashion. A well-placed $2 billion five-year bond anchored by the Americas region, across a mix of both unique and longstanding investors, with strong support from EMEA and Asia buyers as well. The single digit spread over US Treasuries marked the tightest such five-year outcome in nearly 2.5 years, a testament to the credit quality.

Congratulations to the IFC team, BMO was pleased to be a partner in its success,” said Sean Hayes, MD & Head of US Syndicate, BMO Capital Markets.

“IFC was quick to take advantage of a quieter new issue window, kicking off its 2024/25 funding program with a highly successful $2 billion five-year transaction. Despite a return of geopolitical driven volatility, IFC was able attract a high-quality orderbook driven by central banks/official institutions and bank treasuries, while also pricing at the tightest spread vs Treasuries for a new five-year line from an SSA borrower so far this year. Congratulations to the IFC team!” said Sarah Lovedee, Executive Director, Head of Supranational DCM, J.P. Morgan.

“Congratulations to the IFC team on a successful return to the dollar benchmark market with today’s five-year offering. This marks the tightest spread to Treasuries for a SSA five-year benchmark this year – an example of IFC’s credit quality and global investor following. The
orderbook is very high quality including central banks, official institutions, and real money investors from across the world. Congrats to the IFC team!” said Laura O’Connor, Managing Director, Fixed Income Origination & Syndication, TD Securities.

“The IFC has taken advantage of their rarity value and strong following from a broad investor base, to price the first five-year US dollar benchmark in the SSA space with a single digit spread over US Treasuries, and thereby becoming the tightest transaction year-to-date.

Congratulations to the IFC team for choosing exceptional timing to issue their first US dollar benchmark of the year. Wells Fargo is delighted to be part of it,” said Carlos Perezgrovas, Head SSA Origination, Wells Fargo Securities.

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.

For New Africa Business News Richard Adorsu Reports, Africa Correspondent