ISLAMABAD: The International Finance Corporation, a
member of the World Bank group, has issued a five-year largest-ever
global bond worth $3.5 billion as part of its regular programme of
raising funds for private sector development lending.
The issuance of bond generated an order book of close to $5bn and set the pricing benchmark for the borrowing programme of IFC in financial year 2014.
As per distribution of orders for IFC global bond, Asia will get 48 per cent share of the bond, IFC announced on Tuesday.
The Europe/Mideast/Africa (EMEA) region will get 40pc share of global bond distribution of orders.
In terms of investment, central banks and official institutions will get 64 per cent share, while banks and corporates will get 26pc share of investment Consistent with IFC practice, proceeds of the bond would be swapped into floating-rate US dollar funds that would be available for IFC investments in emerging markets.
IFC has issued dollar-denominated global bonds each year since 2000.
All IFC bond issuances are rated triple-A by Standard and Poor’s and Moody’s.
“IFC’s priority is to support a vibrant, sustainable private sector that contributes to eradicating extreme poverty and pursuing shared prosperity in emerging markets and globally,” said IFC Vice President and Treasurer, Jingdong Hua.
IFC plans to raise $16bn across a range of markets and currencies during its current fiscal year ending June 30, 2014.
Borrowings denominated in US dollars account for the majority of IFC funding programme.
Other funding sources include the Australian-dollar Kangaroo market, the US domestic market, and the Japanese market.
IFC also issues discount notes in US dollars and in the offshore ‘renminbi’ market, thematic bonds that support specific areas such as climate change or microfinance, and local currency bonds to develop local capital markets and to fund local currency loans.
IFC strategy in Pakistan focuses on promoting private sector growth, expanding the power supply, improving transportation infrastructure, supporting trade financing, and increasing lending to smaller businesses.
During the last three years, IFC has ramped up its investments and advisory services work in Pakistan, supporting the development of the private sector.
In fiscal year 2012, IFC committed $555 million in Pakistan, and its current portfolio stands at almost $913m.
In the current fiscal year, IFC also helped mobilise $148m for investments in the fields of infrastructure and renewable energy.
The issuance of bond generated an order book of close to $5bn and set the pricing benchmark for the borrowing programme of IFC in financial year 2014.
As per distribution of orders for IFC global bond, Asia will get 48 per cent share of the bond, IFC announced on Tuesday.
The Europe/Mideast/Africa (EMEA) region will get 40pc share of global bond distribution of orders.
In terms of investment, central banks and official institutions will get 64 per cent share, while banks and corporates will get 26pc share of investment Consistent with IFC practice, proceeds of the bond would be swapped into floating-rate US dollar funds that would be available for IFC investments in emerging markets.
IFC has issued dollar-denominated global bonds each year since 2000.
All IFC bond issuances are rated triple-A by Standard and Poor’s and Moody’s.
“IFC’s priority is to support a vibrant, sustainable private sector that contributes to eradicating extreme poverty and pursuing shared prosperity in emerging markets and globally,” said IFC Vice President and Treasurer, Jingdong Hua.
IFC plans to raise $16bn across a range of markets and currencies during its current fiscal year ending June 30, 2014.
Borrowings denominated in US dollars account for the majority of IFC funding programme.
Other funding sources include the Australian-dollar Kangaroo market, the US domestic market, and the Japanese market.
IFC also issues discount notes in US dollars and in the offshore ‘renminbi’ market, thematic bonds that support specific areas such as climate change or microfinance, and local currency bonds to develop local capital markets and to fund local currency loans.
IFC strategy in Pakistan focuses on promoting private sector growth, expanding the power supply, improving transportation infrastructure, supporting trade financing, and increasing lending to smaller businesses.
During the last three years, IFC has ramped up its investments and advisory services work in Pakistan, supporting the development of the private sector.
In fiscal year 2012, IFC committed $555 million in Pakistan, and its current portfolio stands at almost $913m.
In the current fiscal year, IFC also helped mobilise $148m for investments in the fields of infrastructure and renewable energy.
