IFC Launches Its First Australian Dollar-Denominated Bond
IFC, a member of the World Bank Group, today announced the launch of its first Australian dollar “Kangaroo” bond with a five-year A$500 million ($458 million) issue to raise funding for IFC’s work to strengthen the private sector and reduce poverty in developing countries.
The securities, which mature February 28, 2013, were priced to yield 94.75 basis points over the 6.5 percent 2013 benchmark Australian government bond. Joint lead managers for this transaction were Commonwealth Bank of Australia and RBC Capital Markets.
“The investor preparation work we did locally in Australia, combined with the support and advice of our lead arrangers laid the groundwork for the success of this issue,” said IFC Vice President, Finance and Treasurer Nina Shapiro.
A total of 18 local and international financial institutions bought the securities; 40 percent were placed with Australian firms. “We were very pleased with the broad, global investor interest in our inaugural Australian dollar issue,” said John Borthwick, IFC Deputy Treasurer and Head of Funding.
The proceeds of the issue were swapped into floating rate U.S. dollar funds and will be used to finance IFC’s lending operations. IFC provides loans, equity, structured finance, and risk management products, as well as advisory services to private enterprises in developing countries.
IFC’s funding activities focus on two key goals: raising and securing funds to meet IFC’s annual funding requirements as well as stimulating growth in emerging capital markets by issuing bonds in local currencies. For the fiscal year ending June 30, 2008, IFC has a planned borrowing program of up to US$5 billion equivalent. IFC’s long-term debt is rated triple-A by both Standard & Poor’s and Moody’s Investors Service.
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