IFC Issue $500 Million Climate-Smart Investments Green Bond

THE International Finance Corporation (IFC), have issued a $500 million three-year green bond to support climate-friendly investments in developing countries.

IFC will use the proceeds to support investments in renewable energy, energy efficiency, and other areas that reduce greenhouse emissions. These investments are expected to reduce greenhouse emissions by the equivalent of 2.5 million metric tons of carbon dioxide per year—a result similar to taking 500,000 cars off the road, according to IFC’s Green Bond Impact Report, which was released at the same time as the issue of the bonds.

"Green bonds can play a powerful role in mobilizing international savings for climate finance, thereby reducing greenhouse gas emissions,” said Jingdong Hua, IFC Vice President and Treasurer. “IFC will continue bringing greater diversity, liquidity, and transparency to strengthen this important asset class.” 

IFC’s latest bonds were denominated in U.S. dollars and listed on the London Stock Exchange. The bonds received overwhelming support from investors focused on promoting socially responsible investment.  

Nikhil Rathi, CEO, London Stock Exchange plc & Director of International Development, London Stock Exchange Group, said:” We are committed to establishing London as the world’s leading centre for green finance – an exciting new asset class commanding global attention. London Stock Exchange is a world leader in green bond listings with the most comprehensive offering of any international exchange. We have been delighted to welcome IFC green bonds in a range of currencies including RMB, INR and now USD. Today’s successful listing demonstrates London’s unparalleled ability to attract significant capital to green projects and investment in developing countries.”

IFC is one of the world’s largest financiers of climate-smart projects for developing countries, with investments totaling about $13 billion over the last decade.  IFC is also one of the first issuers to publish a green bond impact report, providing an overview of the environmental and social impacts expected from eligible projects.

Picture: renewable energy by Jürgen, reproduced under CCL.

Monday 23rd November 2015

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