Washington, D.C., November 7, 2022—IFC issued its first green bond in the Australian dollar market, raising 900 million Australian dollars for climate-friendly projects.
The landmark fixed-rate bond due to mature in May 2027 is the largest Australian dollar green bond issued by a multilateral development bank in 2022 and is also IFC's largest Kangaroo transaction in over a decade.
The proceeds of the bond will be earmarked for climate-smart projects, including clean energy, energy-efficient buildings, transport, green banking, agriculture, and climate adaptation in developing economies. The transaction attracted robust investor demand, garnering orderbooks of over 1 billion Australian dollars.
IFC has an established yield curve in in the Kangaroo market, and in August this year issued a new 500 million Australian dollar 3.5-year bond.
"Emerging markets will represent the lion's share of the world's emissions growth. Crowding in investor capital to fund climate-smart projects in developing countries is critical to building a prosperous, resilient, and low-carbon economy," said John Gandolfo, IFC Vice President and Treasurer, Treasury & Mobilization.
"I'm delighted by investors' strong interest in our debut Kangaroo green bond. It was an opportune time to return to the Kangaroo market after our last Australian dollar benchmark issuance in August."
IFC remains one of the world's largest financiers of climate-smart projects for developing countries. IFC was also one of the earliest issuers of green bonds, launching a Green Bond Program in 2010 to help catalyze the market and unlock investment for private sector projects that support renewable energy and energy efficiency. This new bond sends a strong signal of IFC's renewed commitment to create conditions for climate investments and solutions ahead of COP 27 starting this week in Sharm El Sheikh, Egypt.
IFC is a founding member of the Green Bond Principles—the most accepted guidelines for the issuance and reporting of green bonds globally.
Joint lead managers for this transaction were J.P. Morgan, Nomura, and RBC Capital Markets.
"IFC has today successfully reopened the SSA AUD market with an impressive A$900m 4.5yr green benchmark. The transaction demonstrates IFC's leadership in the market, enjoying broad based support from global central banks and asset managers. Also notable, was the participation of the domestic investor base who have been absent from the sector for some time. Congratulations to the IFC team for a fantastic result in what continue to be challenging markets," said Sarah Lovedee, Executive Director, Head of Supranational DCM, J.P. Morgan.
"Nomura was incredibly proud to be involved in the IFC's latest landmark transaction; a record breaker on a number of levels but also a testament to the Issue's credit quality, investor reception and global reach. The market reception to the inaugural Green Bond was impressive and a validation of the mandate and strength of the Green Framework, rewarding the IFC with their largest AUD outing since 2011," said Mark Yeomans, Managing Director, Nomura International plc.
"IFC's impressive inaugural Kangaroo green bond during challenging conditions is a testament to their patient and methodical approach to the Kangaroo market as well as their pioneering work in green bonds," said Jigme Shingsar, Managing Director, RBC Capital Markets.
FinalTerms
| Issuer | International Finance Corporation (IFC) |
| Rating | Aaa (stable) / AAA (stable) (Moody's / S&P) |
| Issue Amount | A$ 900,000,000 |
| Pricing Date | November 4th, 2022 |
| Settlement Date | November 14th, 2022 (T+6) |
| Maturity Date | May 14th, 2027 |
| Re-Offer Price/Yield | 99.808% / 4.4975% |
| Coupon | 4.450% (semi-annual, RBA Bond Basis) |
| Re-offer Spread to Swaps | BBSW +41bps |
| Re-offer vs. Benchmark | ACGB 4.750% due Apr-27 +103.25bp |
| Joint Bookrunners | J.P. Morgan, Nomura, RBC Capital Markets |
Distribution Statistics
| Investor Type | Geography | ||
| Asset Managers | 35.9% | Australia | 47.1% |
| Central Banks/Official Institutions |
35.3% | Asia | 33.4% |
| Banks | 17.1% | Europe | 19.4% |
| Others | 11.6% | ||
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
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