Washington: The International Finance Corporation (IFC, rated Aaa/AAA), a member of the World Bank Group, has successfully priced its inaugural US dollar benchmark bond of the fiscal year. This bond, classified as a green bond, aims to raise $2 billion to bolster private sector growth and create jobs in developing countries.
According to Emirates News Agency, the bond issuance garnered substantial interest from investors worldwide, amassing an $8 billion book with 120 investor orders. This remarkable demand highlights the strong global appetite for high-quality US dollar benchmark bonds.
The bond is structured to pay a semi-annual coupon of 4.25% and offers a spread of 1.7 basis points over the reference US Treasury. It will be listed on the Luxembourg Stock Exchange, providing investors with access to high-grade liquid products in multiple currencies.
"The exceptional investor response to IFC's inaugural US dollar benchmark bond of the fiscal year underscores the global depth of demand for high-quality sustainable investments," stated Jorge Familiar, Vice President and Treasurer of the World Bank Group. He emphasized the role of these bonds in fostering more sustainable and competitive economies, while also offering investors opportunities to support emerging markets.