IFC, a member of the World Bank Group, issued a three-year social bond, raising $2.0 billion to support low-income communities in emerging markets.

The transaction represents IFC’s largest ever social bond, and the largest US dollar denominated social bond issued by a supranational. The orderbook reached a total size of $11 billion, IFC’s largest ever order book for a single bond issuance. It follows a 1 billion Australian dollar denominated social bond issued by the corporation last week.

Announced on Monday, the orderbook grew steadily during the marketing process and continued to do so throughout the bookbuild.

“In an era marked by rising inequality and poverty, social bonds have emerged as a crucial tool for directing investments to essential projects in emerging markets,” said John Gandolfo, IFC Vice President and Treasurer, Treasury & Mobilization. “This bond will unlock additional funding for vulnerable communities and underserved groups in emerging markets in areas such as health, education, and food security.”

The social bond is issued under an updated social bond framework, which IFC published last week. The social bond framework received a rating of “excellent” from second opinion provider Sustainable Fitch, who confirmed the framework’s full alignment with the International Capital Market’s Social Bond Principles.

IFC is one of the largest global issuers of social bonds and the only World Bank Group entity that issues social bonds.

Barclays, Goldman Sachs, Nomura, and SEB acted as joint lead managers for the transaction.

“Congratulations to the IFC team on achieving great success with their second US dollar fixed rate benchmark outing of the fiscal year. The high-quality orderbook, in excess of $11 billion, and limited price sensitivity of the global investor base, is testament to the depth of demand for the IFC credit.

Despite a busy primary market, IFC achieved an upsized transaction at a minimal new issue concession. Barclays are honored to have supported this new issue,” said Alex Paterson, Managing Director, Head of SSA DCM, Barclays.

“Congratulations to the IFC team on an incredibly successful transaction with today’s three-year US dollar benchmark! This marks IFC’s largest orderbook ever, comprising of very high-quality orders from central banks, official institutions, bank treasuries and other real money investors from across the globe.

Tightening the spread by four basis points from initial price thoughts is a testament to IFC’s strong credit quality and global investor demand,” said Dorothee Amar, Managing Director, Co-Head of SSA, Goldman Sachs International.

“With this new $2 billion three-year social bond transaction (the first under the new framework), the International Finance Corporation has once again demonstrated its commitment to the US dollar market and its loyal investor base. Despite very congested markets IFC was rewarded with its largest orderbook ever and over five times covered for the deal.

The sheer volume and quality of the orderbook underscores IFC’s position as a US dollar market favorite and has enabled IFC to achieve the largest spread tightening seen in the market this year! Congratulations on this fantastic result,” said Spencer Dove, Managing Director, Head of DCM SSA at Nomura.

“Congratulations to IFC on this fantastic outcome. In a crowded market the response from global investors is truly an endorsement of not only their standing in capital markets but also of their leadership in the development of the social bond market. SEB is delighted to have been part of the team on this transaction,” said Anna Sjulander, Head of SSA DCM, SEB.

Proceeds from IFC’s social 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; affordable housing; women-owned 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; as well as food security.

IFC is a frequent issuer of social bonds in public and private markets, in various currencies and tenors.

The Central Bank of Nigeria (CBN) has introduced two innovative initiatives: the Document Flow (DocFlow) System and the Naira Payment Solution for Ministries, Departments, and Agencies (MDAs).

These initiatives aim to enhance efficiency and lower operational costs within the civil service.

A statement from the CBN on Thursday revealed that the launch took place at its Head Office in Abuja on Wednesday, as part of the Bank’s ongoing digital transformation project, “Digital First,” which was initiated by the Governor, Mr. Olayemi Cardoso, in December 2023 as a key element of his transformation agenda.

The statement quoted Cardoso describing the DocFlow system as a groundbreaking solution designed to revolutionise the Bank’s document management processes by digitising documentation, minimising paper usage, and streamlining approval processes.

He emphasised the significance of the MDAs Naira Payment Solution, which automates the cash withdrawal process for MDAs, enhancing efficiency in financial transactions and strengthening client support.

Cardoso pledged his commitment to all initiatives of the Bank, which aim to enhance service delivery, improve operational efficiency, and foster sustainability through technological advancements. He expressed delight that the two solutions were fully developed in-house, thus saving substantial costs.

The Deputy Governor, Operations, Emem Usoro, was also quoted as saying that the launch of the solutions demonstrated the Bank’s desire for operational excellence through process automation and creating a culture of innovation that prioritises stakeholder satisfaction.

She further highlighted the benefit of the MDAs Naira Payment Solution, which includes improved service delivery to the MDAs, while minimising errors, irregularities, and mitigating fraud.

In her remarks, the project lead and Ag. Director of CBN’s Information Technology Department, Mrs. Jide-Samuel, disclosed that the MDA Cash Payment Solution has been successfully tested with some MDAs and aligns with the Bank’s enterprise objective of “Excellence in Central Banking Operations.”

“The MDAs Naira Payment Solution is considered a game-changer in the CBN’s financial transaction management. It is projected to cause a 70% improvement in payment turnaround time and further improve Nigeria’s financial ecosystem,” the statement added.

Temi Popoola, Group CEO, Nigerian Exchange Group Plc (NGX Group) reiterated the transformative potential of Africa’s capital markets at the launch of the Ethiopian Securities Exchange (ESX).

Speaking at the event, according to a statement from NGX. Popoola emphasised the need for stronger regional collaboration, government-private sector synergy, and innovative market solutions to unlock the continent’s economic potential.

NGX Group’s strategic investment in ESX underscores its leadership in advancing Africa’s capital market infrastructure. “The launch of ESX represents a pivotal moment for Ethiopia and the broader African financial landscape,” Popoola stated.

“ESX will serve as a crucial mechanism for capital formation and market liquidity, driving sustainable economic growth.”

Expounding on NGX Group’s investment rationale, Popoola highlighted Ethiopia’s immense market potential and the shared vision of fostering economic growth through innovation. “Our partnership transcends traditional investment parameters,” he explained.

“It is about ensuring that ESX evolves into a key player in Africa’s financial ecosystem, enabling cross-border investments and setting benchmarks for market development.”

Popoola also drew parallels with global success stories like India, which has leveraged its capital markets to achieve significant economic transformation. He emphasized the importance of responsible market opening to attract local and continental capital. “By following this path, Ethiopia can become a financial hub in Africa,” he remarked.

Prime Minister Abiy Ahmed lauded the launch of ESX as a transformative milestone in the country’s journey toward economic modernization.

“Today, we have officially rung the bell to launch the Ethiopian Securities Exchange, our nation’s first stock exchange,” the Prime Minister announced on X. “This is a call to global investors: Ethiopia offers immense potential, a fast-growing economy, and a clear trajectory toward shared prosperity.”

Tilahun Esmael Kassahun, CEO of the Ethiopian Securities Exchange, expressed confidence in the partnership with NGX Group. “We are pleased to welcome NGX Group as a strategic partner, building upon the existing support we continue to receive from them,” he said. Kassahun also emphasized the value of NGX Group’s expertise in shaping ESX’s growth and success.

Drawing from NGX Group’s six decades of experience, Popoola shared insights on diversifying financial instruments and expanding access to investment opportunities. “With the right mix of innovation, policy support, and regional collaboration, Ethiopia’s capital market can play a transformative role in driving economic development and establish itself as a leader in Africa’s financial ecosystem,” he concluded.

With the ESX poised to redefine Ethiopia’s financial landscape, NGX Group’s involvement highlights the critical role of partnerships and shared expertise in advancing Africa’s economic narrative.