The International Finance Corporation (IFC) issued a $2 billion social bond to fund projects supporting low-income communities in emerging markets, IFC said. Investor demand hit $5.4 billion—nearly three times the bond size—with central banks and official institutions grabbing 63 percent of the allocations. The three-year bond priced at 3.74 basis points over US Treasuries, a new record tight spread for IFC.
The strong orderbook came from high-quality global investors and showed continued confidence in IFC’s credit standing. Daiwa, Goldman Sachs, Scotiabank, and SEB managed the transaction, which marks IFC’s first benchmark dollar issuance of 2026.
“Proceeds of the social bond will expand funding for private sector projects that support vulnerable communities, including those with limited access to essential services such as healthcare, sanitation, and education,” said Jorge Familiar, World Bank Group Vice President and Treasurer.
The money will flow into projects ranging from clean water and sanitation to affordable housing, women-owned small businesses, and food security initiatives.
IFC regularly issues social bonds across different currencies and timeframes, both in public and private markets. The bonds specifically target communities at the base of the economic pyramid, funding infrastructure like transport and energy systems, plus businesses that incorporate low-income populations into their value chains.
The tight pricing and oversubscription reflect IFC’s reputation in the sovereign, supranational, and agency market, where it’s built a strong track record shaping social bond standards while maintaining excellent credit quality.
