International Finance program to give U.S. individual investors entry to AAA rated EM bonds

By Jennifer Chiou

New York, March 10 - International Finance Corp. announced that it is launching a new program that allows for the first time U.S. individual investors to buy triple-A rated IFC bonds and support private sector development in emerging markets.

According to a company release, the new financial instrument, known as IFC impact notes, is an alternative to securities issued by Government Sponsored Enterprises, or GSEs.

The first offering is comprised of five-year, non-call six-month step-up callable notes with an initial coupon of 1.125%. The maximum coupon on the note will be 4%.

The impact notes have the potential to offer more attractive yields than U.S. Treasuries with equivalent maturities, International Finance said.

"U.S. institutional investors have consistently participated in IFC bond issuances, and this is an opportune time for us to launch a program that introduces us to individual investors," vice president and treasurer Jingdong Hua said in the release.

Chris O'Connor, Incapital's managing director and head of capital markets, said, "We anticipate that IFC impact notes will fill a market gap where we have seen a limited supply of the highest rated issuers."

The World Bank member and lender to the private sector in developing countries is based in Washington, D.C.

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