Washington, D.C., July 13, 2018
—IFC, a member of the World Bank Group, has issued its first Sterling green bond, attracting strong investor demand and raising 350 million Pounds to fight climate change.
This marks IFC’s first Sterling-denominated benchmark in 5 years and is the first green bond to be issued by a multi-lateral development bank in the Sterling market since 2015. The transaction highlights the growing appetite for socially responsible investment in the United Kingdom, with UK-based investors accounting for 52% of the final book.
The proceeds of the bond will go to finance IFC investments in renewable energy, energy efficiency, and other areas that reduce greenhouse emissions globally.
Jingdong Hua, IFC Vice President and Treasurer, said: “I am very happy to announce the first-ever IFC Green Bond Issuance in Pound Sterling, listed on London Stock Exchange. The bond showcases the powerful role that capital markets can play in mobilizing savings for climate-smart finance.”
Nikhil Rathi, CEO, London Stock Exchange Plc said: “We congratulate IFC on its inaugural Sterling green bond listed on London Stock Exchange’s dedicated green bond segment. The listing comes only a few months after the launch of the UK Green Finance Taskforce initiative which encourages more sterling green bond issuance.
“London Stock Exchange is a recognized world leader in green, sustainable financing. Today’s listing is another important step in our mission to create in London, the most climate–aligned investment environment in the world.”
IFC is one of the world’s largest financiers of climate-smart projects for developing countries, and has been a pioneer in the green bond market, since its first issuance in 2010. In 2013 IFC became the first institution to issue a $1 billion global benchmark green bond, helping to transform the market from niche to mainstream. Innovative transactions include the first
offshore Renminbi-denominated green bond
in 2014 and the first green offshore Rupee-denominated bond in 2015. IFC has now issued $8.2 billion of green bonds in 14 currencies since the beginning of the program. These issuances are part of a global strategy to develop the green bond asset class in fixed income markets, and support investments in renewable energy, energy efficiency, green buildings and other areas that reduce greenhouse gas emissions.
Crowding in mainstream investors—as IFC has done today—is critical to accelerate the development of the green bond market and tackle climate change. IFC will continue to focus on helping the private sector address climate change through investments and innovative financing, and by addressing regulatory and policy obstacles to green growth. IFC is committed to increase its climate investments to 28% from its own account, and mobilize an additional $13 billion a year in private financing by 2020.
IFC Green Bond Terms
Issuer: IFC (International Finance Corporation)
Amount: GBP 350 million
Pricing date: July 3
rd
, 2018
Settlement date: July 12
th
, 2018
Maturity date: December 15
th
, 2023
Issue price: 99.782%
Reoffer Yield: 1.292%
Coupon: 1.25%
Listing: London Stock Exchange
Lead Managers: Barclays, Citi, HSBC
About IFC
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In FY17, we delivered a record $19.3 billion in long-term financing for developing countries, leveraging the power of the private sector to help end poverty and boost shared prosperity. For more information, visit
www.ifc.org
