Washington, D.C., August 12 2014
—IFC, a member of the World Bank Group, today issued a green bond denominated in Peruvian soles, raising PEN 42 million soles or approximately $15 million for climate-friendly investments in emerging markets.
The bond sets a precedent as the first green bond issued by a multilateral institution in the Peruvian markets. IFC has also issued green bond in the offshore renminbi markets, as part of a strategy to develop the green bond asset class in emerging markets.
The sole investor in the twenty-year bond is RIMAC Seguros, Peru’s leading insurance company. RIMAC Seguros is the first insurance company in Latin America to invest in green bonds. The lead manager for the transaction was JPMorgan.
“The green bond market is at a tipping point—and with this issuance, we are one step closer to raising awareness for the opportunities the asset class offers emerging market investors,” said IFC Vice President and Treasurer Jingdong Hua. “By investing in IFC green bonds, RIMAC Seguros is demonstrating its commitment to addressing climate change and paving the way for others to follow.”
“Rimac Seguros, as the market leader in insurance services in Peru, has made Social Responsibility one of its strategic priorities. In this sense, we are very pleased to become the first insurer in the region to invest in such bonds. This transaction not only helps to ensure the reliability of our company in the long term but will support IFC's effort to improve the environment,” said Jose Martinez Sanguinetti, chief investment officer with Rimac Seguros.
IFC issues green bonds for private sector investments that support renewable energy and energy efficiency projects, and to develop the green bond asset class. Proceeds from IFC green bonds are set aside in a separate account, and inclusion criteria for eligible investments are independently verified by the Center for International Climate and Environmental Research-Oslo.
Since 2010, IFC has issued $3.6 billion in green bonds. This includes two $1 billion benchmark sales in February and November 2013 that helped solidify the green bond market and the first renminbi-denominated green bond issued in the offshore Chinese markets.
IFC raises funds in the global capital markets to support its lending in emerging markets. Focusing on the private sector, IFC invests to support job creation, access to health care, education, food, infrastructure, and finance, and other development priorities. IFC’s current annual funding program is $18 billion across a range of markets and currencies, with U.S. dollar borrowings accounting for most of the funding activity. IFC Impact Notes are denominated in U.S. dollars.
IFC has been rated triple-A since its first rating in 1989.
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 about 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and boost shared prosperity. In FY14, we provided more than $22 billion in financing to improve lives in developing countries and tackle the most urgent challenges of development. For more information, visit
www.ifc.org
.
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