Spring Investor Newsletter
Sustainable Finance Edition | June 2024

Funding Highlights
As of March 31, IFC raised US$11.2
billion out of its approved US$13
billion funding target for the
July 2023 -June 2024 financial
year. Public trades have been
the preferred funding format
so far, raising US$8.7 billion
through new issues and taps infive currencies: United States
dollar, Australian dollar, Canadiandollar, New Zealand dollar andBritish pound sterling. Private
placement issuances have
served a complementary rolewith US$2.3 billion issued in
fourteen currencies, including
Chilean peso and Azerbaijan
manat. IFC also tapped into thefloating-rate note market, raising
US$100 million, and executed
six local currency transactions in
Bangladeshi taka, Kazakhstani
tenge, Mexican pesos andZambian kwacha, which brought
in US$69.8 million.

US DOLLAR MARKET

KANGAROO MARKET

MAPLE MARKET

IFC issued its first US dollar benchmark of the fiscal year 2024,
printing a US$2 billion 5-year bond in July 2023, which attracted
US$4 billion in orders from a high-quality and diverse investor
base. The trade was issued ahead of the summer lull and took
advantage of a clear window post the July 4 holiday, closing at
mid-swaps + 33bps or 12.7bps over US treasuries. Allocations
to central banks and official institutions were the largest at 69
percent, followed by banks and asset managers with 18 percent
and 13 percent respectively.

The Australian dollar (AUD) was the second largest currency ofissuance for IFC in fiscal year 2023, accounting for 27 percent of
total volume. Given that most IFC issuances are swapped backinto US dollars, the favorable cross-currency basis and the deep
and diverse pool of Australian dollar investors make this market
particularly attractive, especially for long-dated funding needs. In
fiscal year 2024, IFC has continued to leverage these characteristics
by issuing two new trades in this market: a 550 million AUD(equivalent to US$358 million) 3-year social bond in August 2023,
and a 300 million AUD (equivalent to US$193 million) 5-year bondin October 2023. Both of these lines have subsequently beentapped, increasing to an outstanding amount of 650 million AUD(equivalent to US$423 million) and 1 billion AUD (equivalent to
US$656 million) as of March 31, respectively. Several other longerdated lines were tapped throughout the year, most notably the
February 2031 and August 2033 lines, bringing the total issuance to
3.2 billion AUD, equivalent to approximately US$2.1 billion.

The Maple market holds a high level of strategic
importance for IFC. In August 2023, IFC issued its largest
Canadian dollar (CAD) bond to date, a 1 billion CAD(equivalent to US$746 million) 3-year green bond tofinance eligible projects under our Green Bond Framework.
The trade attracted orders in excess of 1.5 billion CAD(equivalent to US$1.1 billion) with strong support fromhigh quality investors, including central banks, official
institutions, bank treasuries, and asset managers. The
trade also garnered orders from impact-focused investors
with ESG mandates seeking to gain exposure to climate
friendly projects in emerging markets.

KAURI MARKETSTERLING MARKETIFC has an established curve in the Kauri market, with 3.7 billion
New Zealand dollar (NZD), equivalent to approximatelyUS$2.4
billion in outstanding issuances. On December 6, 2023, IFC priced
a 500 million NZD (equivalent to US$307 million) 5-year fixed ratebond, just a day after the Reserve Bank of New Zealand released
an update on its liquidity policy review defining level 1 and level 2
assets, and providing guidance on the adoption of Basel metrics,
amongst others. The announcement gave the trade a tailwind witha strong show of support from domestic bank treasuries and asset
managers.

The Sterling market was the third largest source of funding
for IFC in fiscal year 2023, accounting for 8 percent of
total volume raised. In fiscal year 2024, IFC has issued
two sterling trades: a £600 million (equivalent to US$785
million) 3-year bond and a £650 million (equivalent to
US$823 million) 5-year bond. Both of these lines have beentapped to bring the total outstanding amount to £730
million (equivalent to US$950 million) and £900 million(equivalent to US$1.1 billion), respectively.

In November 2023, IFC issued its second US dollar benchmarkof the fiscal year, a US$1.5 billion 3-year social bond—its
largest social bond issuance to date. The trade was heavily
oversubscribed, with orders reaching US$7 billion from a diverse
range of investors. The transaction marked IFC’s largest everorderbook for a single issuance. This allowed IFC to tighten
spreads by 2bps to close at mid-swaps +33bps, equivalent to8.2bps over treasuries. At the time of pricing, this marked thetightest spread for a Sovereigns, Supranational and Agencies(SSA) issuer in 2023. The proceeds from IFC’s social bondissuances are used to fund projects that generate measurable,
positive social impacts, directly benefitting underserved
populations and contributing to the achievement of the UN
Sustainable Development Goals (SDGs). This helped to attract
orders from impact-focused accounts seeking to gain exposure
to these projects.

42%

ISSUANCES BY CURRENCY
FY24 YTD

7%2%

1% 1% SEK

HKD

CNY

3% 4%

NZD

2%

NOK

OTHER

78%

ISSUANCES BY MARKETFY24 YTD

CORE PUBLIC

17%

USD

CAD

IFC has come to the Maple market at least once a year
since 2018. We have cultivated a diverse base of local andinternational investors who value IFC’s consistent market
presence, benchmark-sized issuances, and thematicofferings.

PRIVATE
PLACEMENTS

19%

AUD

19%

GBP

4%

OTHER
PUBLIC

1%
FRN
0.6% 0.1%

TCS (LOCALCURRENCY)

NSV

1Green and Social Bond Issuances
In fiscal year 2024, IFC has made remarkable
strides in its commitment to sustainablefinance, raising a total of US$3.6 billion as ofMarch 31 through the issuance of sustainablebonds. This amount consists of US$1.3 billion ingreen bonds, which fund projects with positiveenvironmental objectives, and US$2 billion insocial bonds, dedicated to projects that havea positive social impact. This underscores
IFC’s commitment to fostering sustainable
development and addressing critical global
challenges through innovative financial
solutions.

FY24 YTD

IFC has raised a cumulative total of US$13.8 billion through 207 green bondissuances, including taps, in 22 currencies.

Furthermore, in the Australian dollar market, IFC tapped its April 2035 social
bond line twice for 200 million AUD, equivalent to US$128 million and its April
2026 line for 650 million AUD, equivalent to US$423 million. This strategic
maneuver reinforces IFC’s position as a leader in the social bond space,channeling substantial capital towards projects that deliver measurable social
benefits and contribute to the advancement of global development goals.

70%

NON-THEMATIC

SOCIALIn addition to the public offerings, we executed several private placements
which helped to diversify our green bond issuances across several currencies.
These private placements raised 2 billion in Norwegian kroner (NOK) totaling
US$187 million, 2.5 billion in Swedish kronor (SEK) amounting to US$236
million, US$5 million in U.S dollars and 500 million in South African rand (ZAR),
equivalent to US$26 million.

IFC has witnessed substantial investor appetite for its social bonds. To leverage
this investor demand, we issued a 3-year social bond in November 2023, raising
US$1.5 billion. This transaction marks the largest social bond in IFC’s history
and garnered the most substantial order book ever recorded for the institution.
Additionally, this issuance stands out as the most sizable US dollar social bondreleased by any supranational entity in 2023.

ISSUANCES BY THEME

18%

In August 2023, IFC issued its first public green bond issuance in the Canadiandollar market for fiscal year 2024, raising 1 billion CAD, equivalent to US$746
million, which matures in August 2026. The offering sparked considerable
enthusiasm, drawing orders exceeding 1.5 billion CAD from a diverse group of
global investors, including central banks, official institutions, bank treasuries,
and asset managers. IFC’s green bond issuance momentum continued throughthree taps of our existing May 2027 Australian dollar line, totaling 1.5 billion
AUD, equivalent to US$964 million.

12%

GREEN

IFC has raised a cumulative total of US$8.1 billion through 94 social bondissuances, including taps, in 14 currencies.
The green and social bond figures represent IFC’s strategic and impactful
approach to leveraging capital markets by channeling significant resources
into projects that advance global environmental sustainability and socioeconomic development.

2Harnessing Sustainable Finance
IFC’S GREEN AND SOCIAL BOND IMPACT REPORTIFC published its latest Greenand Social Bond Impact
Report, showcasing thesignificant strides made insustainable finance. In fiscal
year 2023, a remarkable
25 percent of IFC’s funding
program was allocated togreen and social bonds,
channeling crucial investment
into projects with positiveenvironmental and social
benefits. These initiatives
range from enhancing
sustainable aquaculture in
Ecuador to upgrading vitalwater and sewage systems
in Brazil, from empowering
women entrepreneurs in
Mongolia to expanding
financial inclusion in Kenya.

IFC’S 2 BILLION NOK GREEN BOND BOOSTS BLUE FINANCE

On World Water Day – March 22,2024 – IFC announced the issuanceof its first green bond focusedon blue finance, a 5-year fixed
rate 2 billion Norwegian krone(approximately US$187 million).

The report highlights the $2 billion in green bonds raised across
six currencies and $1.2 billion in social bonds raised across fivecurrencies, channeling funds into climate-smart projects andinitiatives that bolster social and economic equality with a strongemphasis on gender equity.

This issuance reflects our deep commitment toadvancing sustainable projects that protect our oceans
and vital water resources in emerging economies. By
participating in this bond, investors had the chance tomake a tangible impact, supporting endeavors suchas improving water and sanitation infrastructure in
Brazil and fostering sustainable fishing in Ecuador.
This initiative is in line with the surging interest inblue finance among investors, driven by an increased
recognition of the risks posed by climate change toglobal water resources.

The World Water Council and the Organization for
Economic Co-operation and Development (OECD)estimate that investments required for water-related
infrastructure will reach US$6.7 trillion by 2030 and astaggering US$22.6 trillion by 2050. Recognizing thecritical need for such investments, IFC published the
Guidelines for Blue Finance in 2022 to support the
expansion of the market. Following the publicationof the guidelines, we have expanded our Green Bond
Framework to include categories such as biodiversity andocean and water conservation, as well as more robust
climate adaptation selection processes and climate
mitigation.
The potential for growth in this sector is enormous. The
ocean economy, including economic activities related
to marine livelihoods and ecosystems, is projected togenerate more than US$3 trillion annually by 2030 andprovide employment for about 40 million people, asreported by OECD. This bond issuance will fund projects
such as Sanasa, a water utility company in Campinas,
Brazil, which provides water to the city’s 1.3 million
residents, exemplifying the type of impactful investmentthat can be achieved through our blue finance initiatives.

The inclusion of blue and biodiversity projects marks a significant
milestone, showcasing IFC’s commitment to preserving ouroceans and natural habitats. This expansion follows the 2022
framework update to encompass both green and blue financing,reflecting IFC’s holistic approach to environmental sustainability.
These projects are crucial in promoting the sustainable use ofocean resources and conserving biodiversity, which are vital for
maintaining ecological balance and supporting livelihoods.
The report not only details the impactful projects funded but
also serves as a token of gratitude to investors whose steadfast
support and interest make these achievements possible. As IFC
continues to integrate green and social bonds into its borrowing
strategy, the organization reaffirms its role as a catalyst for
impactful investment in emerging markets, fostering a greener
and more equitable world.
3

Local Currency Issuances
Tight liquidity conditions,higher interest rates, and astrengthening US dollar aresome of the hurdles faced byprivate companies in emerging
markets who are looking toraise financing. These factors,
exacerbated by a projectedeconomic slowdown indeveloping countries by theInternational Monetary Fund(IMF), place an even higher
priority for IFC to provide
local currency solutions to its
clients. This assistance helps
reduce emerging market
private companies’ reliance on
foreign currency loans, thereby
mitigating exposure to foreignexchange risk.

IFC’s issuances in emerging market currencies arean effective way of raising the much-needed local
currency, and on-lending the proceeds to projects
within the country, creating a back-to-back structurethat provides a natural hedge for IFC. Not only dothese issuances directly benefit IFC’s clients bymaking local currency financing more accessible,
but they also help fulfil one of IFC’s mandates ofdeveloping local capital markets by attracting
international investors and broadening the number
of issuers in a particular currency.
ZAMBEZI BONDS
In 2013, IFC issued its inaugural bond in the Zambiankwacha market, a ZMW150 million (approximately
US$28 million at the time of issuance) 4-year note,
becoming the first non-resident issuer in the Zambian
domestic capital markets. In August 2023, IFC
returned to the Zambian market by issuing its second
Zambezi bond, a ZMW193 million (approximately
US$10 million) 5-year floating rate note paying a
coupon based on the 182-day Zambian Treasury
Bill yield minus 50 basis points. Four months later,
IFC issued a third Zambezi bond, a ZMW234 million(approximately US$10 million) 5-year amortizing fixed
rate bond paying a coupon of 18 percent. These trades
were well received and garnered support from both
domestic and international investors seeking to gain
exposure to the currency.
Proceeds of these bonds will support IFC’s work in the
country focused on promoting sustainable private
sector development, supporting small businesses,
and proactively engaging in the development of key
sectors such as infrastructure, agribusiness, andfinancial services.
In fiscal year 2024, IFC has issued a total of US$70
million equivalent of local currency denominatedpaper in the Kazakhstani tenge, Bangladeshi taka,
Mexican peso, and Zambian kwacha.

In fiscal year 2024, IFC has issued atotal of US$70 million equivalent oflocal currency denominated paper in the
Kazakhstani tenge, Bangladeshi taka,
Mexican peso, and Zambian kwacha.
4World Bank Group Updates

IFC’s Accolades in Sustainable Finance

COP28 Commitments:
The World Bank Group aims

IFC has been recognized byseveral prestigious awards,
underscoring its leadershipin sustainable finance.
Notably, IFC was honoredwith the “Social bond of theyear - supranational” award
by Environmental Finance’s
Sustainable Debt Awards 2024
for its US$1.5 billion social bondissuance. This record-setting
bond, the largest issued by asupranational entity in 2023,
garnered an overwhelming
response from investors,
reflecting IFC’s leadership inchanneling funds towards
impactful social projects in linewith the International CapitalMarket Association’s (ICMA)
Social Bond Principles.

for 45% Climate Financeby 2025; IFC hits US$14.4
billion climate milestone

At the COP28 UN Climate Change Conference inDubai, World Bank Group President Ajay Banga set
an ambitious commitment to dedicate 45 percent of
the World Bank Group’s annual financing to climate
projects by 2025. This pledge marks a significant
increase in investment, with more than US$40 billion
per year earmarked to tackle the urgent climate crisis.
Ajay Banga emphasized the urgent need for financial
institutions to take decisive action, moving beyond
incremental steps to implement substantial, effective
measures, with the World Bank Group ready to offer
substantial support to those most affected by climatechange.
As a member of the World Bank Group, IFC aligns
with this vision and works with the private sector
to be a catalyst for impactful investment. We arecommitted to transforming Ajay Banga’s words into
action, ensuring that our collective journey towards
a sustainable and resilient future is marked by real
progress and sustainable impact. In fiscal year
2023, IFC delivered US$7.6 billion in climate finance,
representing 46 percent of our annual investmentcommitments. IFC further mobilized US$6.8 billion ofprivate capital from other sources, bringing our total
climate finance to a record US$14.4 billion.

IFC is on course to align100 percent of new
operations, starting July 1,
2025, with the objectives of
the Paris Agreement. This
commitment is part of theWorld Bank Group goals
and the Joint MultilateralDevelopment Bank (MDB)
framework for Paris
Alignment, a collaborative
effort among MDBs toharmonize climate action.

In addition, IFC’s strategic approach to sustainable finance earned
it the “Best Multilateral Institution for Sustainable Finance”
accolade from Global Finance Magazine. This recognition comeson the heels of IFC’s successful mobilization of a record US$14.4
billion in climate finance in 2023, highlighting its commitment toinnovative financing solutions.
IFC’s influence extends to the African continent, where it wasrecognized as the “Best Bank for Social Bonds in Africa” by Global
Finance Magazine. IFC’s anchor investment in the West African
Economic and Monetary Union’s first social bond in the energy
sector has been pivotal in electrifying underserved communities,
showcasing IFC’s dedication to driving social progress andeconomic inclusion.
Complementing these institutional achievements, IFC’s Irina
Likhachova, Biodiversity Finance Lead, was celebrated as“Personality of the year” for her trailblazing contributions tobiodiversity finance. Her leadership and advocacy has been
instrumental in promoting nature-based solutions and shaping
the future of sustainable debt, earning her recognition from
Environmental Finance.

5

From Evolution to Impact: World Bank Group/IMF Spring Meetings 2024

The World Bank Group is evolving to become a bolder and betterbank to achieve greater scale and impact and help our clientsconfront the most severe challenges facing people and planet.
The April 2024 Spring Meetings highlighted the progress made, atestament to the collective hard work and innovative approaches
to client service and community support.

As part of this process, we haveintroduced initiatives to simplify ourpolicies and processes, squeeze ourbalance sheet, take on more risk, andleverage decades of cutting-edgeknowledge and data. We are also
developing practical and scalable
solutions to crowd in more private
sector investment into emerging
markets and address the barriers
that prevent it.
Together with 24 other MDBs, wepublished, for the first time, therecovery rates of investments withprivate and sub-sovereign borrowers
in emerging markets and developing
economies. The Global Emerging
Markets Risk Database (GEMS)
report provides insights into thecredit risk profile of these borrowers
and reveals the untapped potentialof private sector investments inemerging markets.
We also announced an overhaul toour guarantee business to simplify
and improve access to guarantees
through a new, convenient
marketplace.
In addition, we are implementing
joint country representation in 20
countries—giving clients a single
point of entry and one-stop shopping
for the whole World Bank Group.

These initiatives are part ofa broader impact agenda,
as demonstrated by two
significant announcements
made during the Spring
Meetings: a plan to deliver
energy to at least 300 million
Africans by 2030 and a target
to provide quality affordable
healthcare to 1.5 billion
people by 2030.

6

Investor Engagement
In May 2024, at the BMO GRAMC: Government, Reserve & AssetManagers Conference panel in Toronto, Zauresh Kezheneva spoke about
the IFC’s presence in the Maple market and shared insights on how tonavigate uncertainty in the issuance markets.
In May 2024, at the Barclays Supranational & Agency Conference in New
York City, Yuri Kuroki, shared her insights on IFC’s comprehensive funding
program that strategically encompasses both medium to long-term as
well as short-term financing opportunities.
In April 2024, at the DZ BANK Capital Markets Conference, Ayelet
Perlstein talked about making infrastructure global and bridging theinfrastructure gap between developed and developing nations.
In April 2024, at the RBC 11th annual Sustainable Debt Conference, Ayelet
Perlstein spoke on the Global Perspective on Sustainable Debt Market
panel to highlight IFC’s sustainable bond issuances and its implications inthe sustainable debt market.
In April 2024, at the 11th BBVA Seminar for Public Sector Investors &Issuers, Elena Panomarenko spoke on a panel that discussed green
bonds.
In March 2024, at the KangaNews Debt Capital Market Summit, Marcin
Bill spoke about the Australian market in Asia.
In December 2023, at CIBC’s 7th Annual Government Finance Conference,
Obert Limbani spoke about IFC’s presence in the Maple market.
In November 2023, at the Bloomberg Canadian Finance Conference
Zauresh Kezheneva spoke about the changing dynamics in the Canadianpublic sector.
In October 2023, at the Commonwealth Bank Global Markets Conference,
Marcin Bill and Marsha Monteiro talked about financing in a climate crisis– addressing food insecurity, infrastructure and other needs in developing
economies.

In February 2024, at the SFBTA Conference in Boca Raton, Florida,
Obert Limbani spoke about IFC’s funding program andsustainable bond initiatives for FY24.
7

DISCLAIMER
This document has been prepared for informational purposes only, and the information
herein may be condensed or incomplete. IFC specifically does not make any warranties
or representations as to the accuracy or completeness of these materials. IFC is under noobligation to update these materials. This document is not a prospectus and is not intended toprovide the basis for the evaluation of any securities issued by IFC. This information does notconstitute an invitation or offer to subscribe for or purchase any of the products or services
mentioned. Under no circumstances shall IFC or its affiliates be liable for any loss, damage,liability or expense incurred or suffered which is claimed to have resulted from use of thesematerials, including without limitation any direct, indirect, special or consequential damages,
even if IFC has been advised of the possibility of such damages. For additional information
concerning IFC, please refer to IFC’s current Information Statement, financial statements andother relevant information available at www.ifc.org/investors.

IFC
2121 PENNSYLVANIA AVENUE NW| WASHINGTON, D.C. 20433 USA
WEBSITE: IFC.ORG/INVESTORS |EMAIL: INVESTORS@IFC.ORG | BLOOMBERG: IFC <GO>