IFC Issues 500 Million Canadian Dollar Social Bond to Support Underserved Communities in Emerging Markets

IFC issued a Benchmark Five-Year Social Bond, raising 500 million Canadian Dollars for sustainable investments supporting women entrepreneurs and low-income households in need of essential services.

The transaction, which generated diverse investor interest, is IFC’s second in the Canadian Dollar market under its Social Bond Framework, following a 500 million Canadian Dollar transaction in January 2022.

“It’s great to be back in the Maple market with our second Social Benchmark Bond,” said John Gandolfo, IFC Vice President and Treasurer, Treasury & Mobilization. “We’re committed to maintaining a diverse investor base and the Canadian Dollar market is important to us. The five-year tenor sits well with our maturity profile and ensures we keep a consistent presence in the Canadian market.”

BMO Capital Markets, CIBC Capital Markets and TD Securities acted as joint lead managers for the transaction.

“We were extremely pleased to again participate in IFC’s return to the CAD market in 2023. The transaction was anchored by Bank Treasury demand, but also saw good interest from the domestic real money community as well. A Social Bond which yielded a pick-up over equivalent CMBs and through Ontario for a AAA supranational name, was a strong draw for investors,” said Sean Hayes, Head of US Syndicate & Credit Sales, BMO Capital Markets.

“CIBC is proud to support IFC with its second Maple Social Bond,” said Priya Radha, Global Head, Government Solutions Group, CIBC Capital Markets. “The strong demand underscores IFC’s dedication to the Canadian market, and this is another example of how we are helping our clients achieve an equitable and sustainable economy.”

“IFC continues to demonstrate its unwavering commitment to the Canadian Dollar market with a strong five-year 500 million Canadian Dollar Social Bond offering, while maintaining a clear focus on projects that benefit women-owned enterprises, as well as inclusive business projects as part of their social outreach. IFC has patiently waited for the ideal market backdrop for this transaction, which has been well received by high quality investors globally. Congratulations to the IFC team and TD are delighted to have been involved,” said Steven Castle, Managing Director, Head of Government Finance, TD Securities.

The proceeds of the bond will be allocated to a designated sub-portfolio linked to lending operations for social bond eligible projects.

IFC’s Social Bond Program, launched in 2017, offers bond investors an opportunity to allocate investments to the achievement of certain SDGs, to achieve positive social outcomes without any additional credit risk than that of IFC as a triple-A rated issuer.

Proceeds from the bonds fund a diverse range of social projects which include: affordable basic infrastructure (e.g. clean drinking water, sewers, sanitation, transport, energy); access to essential services (e.g. education and vocational training, healthcare, financing and financial services); affordable housing; women-owned medium small and medium sized businesses who lack access to finance; and companies that incorporate people at the “base of the economic pyramid” into their value chain; and food security.

IFC is a frequent issuer of social bonds in public and private markets, in various currencies and tenors. The Social Bond Program aligns with the Social Bond Principles published by the International Capital Market Association (ICMA).

Since launching its Social Bond Program in 2017, IFC has issued over $6 billion through 87 social bonds in 13 currencies.

IFC Social Bond Terms 

Issuer: International Finance Corporation (IFC)
Issuer rating: Aaa/AAA (Moody’s/S&P)
Amount: CAD 500 million
Settlement date: May 10, 2023
Coupon: 3.30%
Coupon payment dates: Semi-annually on each November 10th and May 10th up to and including the Maturity Date, commencing November 10th 2023
Maturity date: May 10, 2028
Issue price: 99.927%
Denominations: CAD 10,000 + CAD 10,000
ISIN: CA45950KDC14
Listing: Luxembourg Stock Exchange’s Regulated Market
Joint lead managers: Bank of Montreal, London Branch, Canadian Imperial Bank of Commerce, London Branch, The Toronto-Dominion Bank


Distribution Statistics


Central Banks/Official Institutions: 8%              

Asset Managers/Pension/Insurance: 25%

Banks: 67%


Canada: 78%

Europe: 10%                

Asia: 8%

Americas (not including Canada): 4%

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