GLOBAL – IFC, a member of the World Bank Group, has issued a new Canadian dollar (CAD) global benchmark bond, raising CAD500 million to support a resilient recovery in developing and emerging markets, amid the COVID-19 health and economic crisis.
The five-year deal marks IFC’s first issuance in the CAD market this year. It follows a CAD750 million five-year green benchmark issued by IFC in September 2019.
IFC’s last conventional bond issuance in Canadian dollars was also a five-year benchmark, totalling CAD500 million, launched in July 2018.
“We are pleased to be back in the market in Canada, in support of businesses and people’s livelihoods across the developing world as it is impacted by COVID-19,” said IFC Vice President and Treasurer John Gandolfo.
“This trade, which drew interest from around the globe, underscores the continued support IFC has from the investor community, as the largest development institution focused exclusively on developing the private sector in emerging markets,” Gandolfo added.
This is IFC’s fourth benchmark issued in the public markets since the start of the new financial year on July 1st, following a 5-year $2 billion bond in July and a 10-year $1 billion and a 5-year NZD400 million in the second half of August.
These trades were well received in the market and highlight IFC’s nimbleness in responding to market movement and investor demand.
“IFC has shown an impressive commitment to Canadian dollar markets, as this offering stands their third 5-year benchmark issued in as many years,” said Sean Hayes, Managing Director and Head of US Syndicate.
Hayes further noted that the transaction drew strong demand from both domestic and international buyers looking for high quality CAD-denominated assets.
“The transaction offered investors the opportunity to add a conventional bond from an issuer with a world leading ESG profile,” said Cesare Roselli, Global Head of SSA (Sovereign, Supranational, and Agency) Origination at Scotiabank.
Roselli further noted that the perfect timing of the new issue execution paved the way for a top-quality order book and a record new issue spread for a conventional CAD SSA Benchmark.
Banks accounted for 62 percent of the orders, followed by central banks and other official institutions at 31 percent, and asset managers and insurance funds at 7 percent, a statement from IFC revealed.
About 51 percent of orders came from investors in Canada, 31 percent came from investors in Asia, 13 percent came from investors in Europe, and 4 percent from investors in the Americas, not including Canada.