The International Finance Corporation (IFC), a member of the World Bank Group, has announced the successful issuance of its largest-ever social bond, raising $2 billion through a three-year bond to support low-income communities in emerging markets. The bond, which saw an impressive $11 billion orderbook, is the largest US dollar-denominated social bond ever issued by a supranational entity.
The proceeds from the bond will be directed towards projects addressing critical needs in underserved regions, focusing on sectors such as healthcare, education, food security, and basic infrastructure. This includes initiatives like providing clean water, sanitation, energy, transportation, and supporting women-owned small businesses.
John Gandolfo, IFC’s Vice President and Treasurer, emphasized the importance of social bonds in addressing growing inequality and poverty. “This bond will unlock essential funding for vulnerable communities, targeting key development goals in some of the most underserved areas,” he said.
The bond issuance is part of IFC’s updated social bond framework, which was rated “excellent” by Sustainable Fitch for its alignment with the Social Bond Principles set by the International Capital Market Association (ICMA). This rating reinforces the bond’s commitment to international standards of transparency and social impact.
Market reaction to the issuance was strong, with high demand from global investors. Barclays, Goldman Sachs, Nomura, and SEB acted as joint lead managers for the transaction. The bond’s exceptional performance highlights IFC’s solid credit quality and its appeal to investors seeking to support sustainable development in emerging markets.
The successful launch of this bond reflects growing investor interest in financing social impact projects, reinforcing the role of supranational institutions in addressing global development challenges.
