High quality investment with mainly o Sovereign and supra bonds ... 100% of net worth; loan match-funded to manage curre
FUNDING OPERATIONS
Fact Sheet CREDIT HIGHLIGHTS
IFC, (member of the World Bank Group) a Washington D.C. based supranational founded in 1956, is consistently one of the top rated issuers in the world, focusing on private sector investments in developing countries.
Directly owned by 184 member countries. The US controls 24%, Japan 6%, with the seven largest OECD governments controlling 51% of the capital.
IFC Member Countries (184)
Unlike other supranationals, all IFC equity capital is fully paid-in and is exclusively in US$. IFC does not pay taxes or dividends.
AAA/Aaa ratings from Standard & Poor’s and Moody’s. The ratings have been reaffirmed every year since 1989 and carry a stable outlook. As a multilateral development bank, IFC debt receives a 0% risk weighting under Basel II.
IFC’s financials are very strong: strategic capital is US$4.0 bn and liquidity is high, equivalent to 77% of the next three years’ net cash needs; while leverage is low (2.7:1).
IFC’s US$29.7 bn liquid assets, representing approximately 39% of total assets, are invested in high quality instruments.
High quality investment with mainly o
Sovereign and supra bonds
o
Corporate bonds and ABS (Aaa/AAA)
o
Financial institution deposits (Aa3/AA- or better)
OUTLOOK “We view IFC, a global institution with DRE in 125 member countries and many economic sectors, as well-diversified” - Standard & Poor’s, April 2012
FUNDING OPERATIONS
IFC’s products cover broad range of debt and equity instruments, from loan structures through to advisory services and partial credit guarantees.
IFC’s US$30.7bn disbursed investment portfolio is highly diversified by region, sector and company. Maximum exposure limits of Net Worth plus General Reserves are 20% to a single country, 12% to a single risk sector, and 4% to a single obligor.
Risks are proactively managed: market-based loan pricing; equity and quasi-equity investments limited to 100% of net worth; loan match-funded to manage currency, interest rate, and maturity risks.
FUNDING HIGHLIGHTS
IFC Board Approved Funding program for FY2012 is US$10 billion. Strategy
Provide liquid US$ global benchmark bonds annually o
IFC debt instruments are clearable through Fed Wire, DTC, Euroclear and Clearstream
o
IFC is exempt from SEC filing and EU prospectus directive
Access broad array of public and private bond markets across multiple currencies (private placements, structured bonds, callable notes, Medium Term Notes, Kauri, Kangaroo, Maple, Sterling, Uridashi, Green bonds, Microfinance bonds)
Promote development of emerging capital markets by issuing bonds in local currencies
IFC currently maintains US$44.67bn in outstanding debt spread across 11 currencies as of June 30, 2012.
IFC is a US dollar-based institution; all borrowings are swapped into variable-rate US dollars.
IFC has issued a US$ Global bond each year since 2000. All deals have been significantly oversubscribed and priced at the tight end of the supranational range.
April 17, 2012: US$2bn IFC 1.0% due April 17, 2017
November 23, 2011: US$3bn IFC 1.125% due November 23, 2016
April 11, 2011: US$2bn IFC 2.366% due April11, 2016
November 17, 2010: US$2bn IFC 2.125% due November 17, 2017
April 20, 2010: US$2bn IFC 2.75% due April 20, 2015
April 22, 2009: US$3bn IFC 3.0% due April 22, 2014
April 28, 2008: US$1bn IFC 3.50% due May 15, 2013
Consistent top tier performance among non-sovereign SAS bond in the 5 year sector since issuance. Top buy and hold accounts coupled with balanced distribution by region.
2121 Pennsylvania Ave., NW Washington D.C. 20433 TEL: (202) 458 9230 www.ifc.org/treasury