Yemisi Izuora
The International Finance Corporation (IFC), priced its first US dollar benchmark bond of the fiscal year, a green bond raising $2 billion to support the private sector and job creation in developing countries.
The transaction generated very strong investor interest, reaching a book of $8 billion, supported by 120 investor orders, demonstrating robust global demand for high-quality US dollar benchmark bonds.
Joint lead managers for this transaction were BMO Capital Markets, Citigroup Global Markets Limited, Goldman Sachs International, and J.P. Morgan.
The bond pays a semi-annual coupon of 4.25 per cent, offers a spread of 1.7 basis points versus the reference US Treasury, and will be listed on the Luxembourg Stock Exchange.
“The exceptional investor response to IFC’s inaugural US dollar benchmark bond of the fiscal year underscores the global depth of demand for high-quality sustainable investments,” said Jorge Familiar, Vice President and Treasurer, World Bank Group. “Our bonds help build more sustainable and competitive economies, providing investors the opportunity to support emerging markets through high-grade liquid products in multiple currencies.”
The new bond is IFC’s first US dollar denominated green benchmark bond since 2017 and the first issued under IFC’s updated Green Bond Framework, published in July 2026. The Second Party Opinion was provided by S&P Global Ratings, who confirmed the framework’s full alignment with the Green Bond Principles published by the International Capital Market Association.
Proceeds from IFC’s green bonds support the financing of projects that address a diverse range of environmental objectives, including adaptation and resilience, biodiversity and nature, ocean and water protection, climate change mitigation, and a circular economy. The updated framework highlights outcomes such as quality jobs, resilient livelihoods, and inclusive economic participation as integral components of climate-smart business.
“IFC kicks off its new fiscal year with a resounding success. The orderbook of $8 billion underscores the market’s confidence and support in IFC’s mission and credit. BMO is proud to have supported IFC’s return to the benchmark green bond market and its continued commitment to advancing sustainable development worldwide,” said Sean Hayes, Managing Director & Global Head of Syndicate, BMO Capital Markets.
“Congratulations to the IFC team on an impressive return to the US dollar benchmark green bond market. The transaction was issued under IFC’s new Green Bond Framework and offers investors a rare opportunity to invest in liquid, US dollar denominated green issuance from a triple-A rated supranational. Citi is delighted and proud to be part of this deal which supports financing towards projects in developing countries to achieve environmental objectives,” said Ebba Wexler, Head of SSA (Sovereign, Supranational, and Agency) DCM (Debt Capital Markets), Citigroup Global Markets Limited.
“We congratulate the IFC team on their first US dollar benchmark of their new fiscal year and their first US dollar green benchmark since 2017! The robust orderbook dynamics were a clear reflection of IFC’s exceptional credit quality and the outstanding global investor support they command,” said Dorothee Amar, Co-Head of SSA, Goldman Sachs.
“Compliments to IFC on a standout US dollar green bond. The strong outcome across key metrics, supported by the green label, is a clear testament to IFC’s global credit appeal and continued commitment to sustainability,” said Sarah Lovedee, Head of Supranationals, J.P. Morgan.
IFC has issued US dollar-denominated global bonds each year since 2000. In addition, IFC complements its public issuance by accessing a variety of different markets, including through private placements and thematic bonds, such as green bonds to support climate-smart business, and social bonds that fund IFC projects to help underserved people in developing countries with limited access to essential services. IFC also issues local-currency bonds to develop local capital markets and fund local-currency investments. IFC’s fiscal year runs from July 1 to June 30.