• Historic scale: IFC’s largest-ever social bond issuance, raising $2 billion with an $11 billion orderbook, showcasing robust global investor demand.
• Strategic focus: Funds will target health, education, food security, and basic infrastructure in underserved communities in emerging markets.
• Global recognition: The updated social bond framework received an “excellent” rating from Sustainable Fitch, highlighting alignment with international standards.

The International Finance Corporation (IFC), a member of the World Bank Group, has issued its largest-ever social bond—a $2 billion, three-year bond aimed at supporting low-income communities in emerging markets. This issuance also marks the largest US dollar-denominated social bond ever by a supranational, with a record $11 billion orderbook.

“In an era marked by rising inequality and poverty, social bonds have emerged as a crucial tool for directing investments to essential projects in emerging markets,” said John Gandolfo, IFC Vice President and Treasurer, Treasury & Mobilization. “This bond will unlock additional funding for vulnerable communities and underserved groups in areas such as health, education, and food security.”

The bond was issued under IFC’s recently updated social bond framework, which Sustainable Fitch rated “excellent” for its alignment with the International Capital Market’s Social Bond Principles.

Related Article: Deutsche Bank Announces the Issuance of its Inaugural €500 Million Social Bond

Proceeds from the bond will fund a diverse range of projects, including affordable infrastructure (clean drinking water, sanitation, energy, and transport), women-owned small businesses, and food security initiatives.

Market Response

Barclays, Goldman Sachs, Nomura, and SEB acted as joint lead managers for the transaction.

“Despite a busy primary market, IFC achieved an upsized transaction at a minimal new issue concession,” said Alex Paterson, Head of SSA DCM at Barclays.

“The high-quality orderbook, in excess of $11 billion, is a testament to IFC’s strong credit quality and global investor demand,” added Dorothee Amar, Co-Head of SSA at Goldman Sachs International.

Nomura’s Spencer Dove highlighted the bond’s unprecedented spread tightening and global appeal: “The sheer volume and quality of the orderbook underscores IFC’s position as a US dollar market favorite.”

Anna Sjulander from SEB noted, “The response from global investors is truly an endorsement of IFC’s leadership in the development of the social bond market.”

As one of the largest global issuers of social bonds, IFC continues to play a critical role in mobilizing capital for projects that advance equitable growth and improve living conditions in underserved regions.

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