Washington, D.C., November 5, 2013
—IFC, a member of the World Bank Group, today issued its second $1 billion green bond in less than a year to support climate-smart investments in emerging markets. The sale brings IFC’s total green bond issuances to $3.4 billion.
Proceeds of IFC green bonds are used for private sector investments in renewable energy, energy efficiency, and other areas that reduce greenhouse gas emissions. In February, IFC issued a $1 billion green bond that was the world’s largest green bond issue to date.
“By offering global investors a second three-year benchmark green bond this year, IFC is playing a leading role in strengthening the asset class,” said IFC Vice President and Treasurer Jingdong Hua. “At the same time we are leveraging the tremendous demand in the global capital markets to support our sharpened focus on investments in projects related to climate change.”
The bond issued today was heavily over-subscribed and sized to address the demand from an increasing number of investors interested in climate-related opportunities.
It was principally allocated to socially responsible investment portfolios and drew support from central banks including Germany’s Bundesbank and the Central Bank of Brazil, reflecting their commitment to supporting green growth. Other investors included Blackrock, California State Teachers’ Retirement System (CalSTRS), Calvert Investments, Deutsche Bank Asset and Wealth Management, Ford Motor Company, Microsoft, Praxis Intermediate Income Fund and Everence, State Street Global Advisors, Trillium Asset Management, United Nations Development Programme, and United Nations Joint Staff Pension Fund.
"The World Bank and IFC goal to end extreme poverty by 2030 is something that resonates with the faith values of the Praxis Intermediate Income Fund,” said Benjamin Bailey, CFA, Fixed Income Manager at Praxis Mutual Funds. “Our clients appreciate investments like these where the yields are competitive and climate related projects are supported.”
In FY13, IFC invested a record $2.5 billion in climate-smart projects—nearly 14 percent of the institution's overall commitments for the year. About two thirds of IFC's investments in the power sector involved energy efficiency and renewable energy. By FY15, IFC expects its climate-related investments to make up 20 percent of its long-term financing, or $3 billion per year.
Stephanie Miller, Director of IFC Climate Business, said: "There are tremendous investment opportunities in the shift to cleaner and more efficient energy, especially in developing countries where solar, wind and other renewables are gaining traction fast.”
IFC green bonds support projects to reduce greenhouse gas emissions—for example, by rehabilitating power plants and transmission facilities, installing solar and wind power, and providing financing for technology that helps generate and use energy more efficiently.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in more than 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and promote shared prosperity. In FY13, our investments climbed to an all-time high of nearly $25 billion, leveraging the power of the private sector to create jobs and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org
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