Washington, D.C., October 17, 2017
—IFC, a member of the World Bank Group, today issued a 5-year green bond that raised $1 billion for climate-smart investments in emerging markets, amid surging investor demand.
The issuance, which was 2.6 times oversubscribed, marked the third time IFC has issued a $1 billion global benchmark green bond over the past seven years. It raised IFC’s total green-bond issuance to more than $7 billion.
“IFC was the first institution to issue a $1 billion global benchmark green bond, demonstrating that we lead by example,” said IFC Vice President and Treasurer Jingdong Hua. “Crowding in mainstream investors—as IFC has done today—is critical for us to accelerate the development of the green bond market. We need scale to tackle climate change, which requires trillions of dollars in financing.”
Half an hour after order books opened, demand surged above $1 billion, with significant support from investors focused on socially responsible investments. Investors included Brown Advisory, Barclays, Andra AP Fonden, Calvert Research and Management on behalf of Calvert funds, Export Development Canada, Fjarde AP Fonden, Jupiter Global Ecology Diversified Fund, QBE Insurance Group, Mirova, Praxis Impact Bond Fund, State Street Global Advisors, Tredje AP Fonden, and the California State Teachers’ Retirement System (CalSTRS).
Tom Graff, Fixed Income Portfolio Manager at Brown Advisory,
“Brown Advisory’s sustainable bond strategy seeks equal parts performance and positive sustainable impact. A high-quality bond supporting climate-related projects like this IFC issue is a perfect addition to our strategy.”
Susan Love, Vice President and Treasurer at Export Development Canada, said: “We were delighted to participate in the IFC green bond—the second time EDC has invested in green bonds for our liquidity portfolio. Our commitment to the development of the green bond market is expanding, and we will participate as both an issuer and investor in this product which aligns with the Government of Canada’s focus on climate change.”
Over the past three years, IFC green bonds have supported 125 climate-smart projects—including 33 in fiscal year 2017, according to IFC’s latest
Green Bond Impact Report
. These investments are expected to generate approximately 2.19 million megawatt-hours in annual renewable energy generation and reduce greenhouse emissions by the equivalent of 2.24 million metric tons of carbon dioxide per year—similar to taking more than 470, 000 cars off the road.
Proceeds from IFC green bonds are allocated within IFC to a separate account and will be used for investments in renewable energy, energy efficiency, and other areas that reduce greenhouse emissions. IFC’s inclusion criteria for eligible investments has been independently verified by the Center for International Climate and Environmental Research-Oslo,
IFC is one of the world’s largest financiers of climate-smart projects for developing countries. Since 2005, IFC has invested $18.3 billion in long-term financing from its own account, and mobilized another $11 billion through partnerships with investors for climate-related projects. In all, IFC has issued $7.25 billion in green bonds in 12 currencies—including Chinese yuan, Indian rupees, South African rand and Peruvian soles. These issuances are part of a global strategy to develop the green bond asset class in emerging markets.
IFC Green Bonds Terms
Issuer: IFC (International Finance Corporation)
Type: Global (SEC Exempt)
Amount: US$1 billion
Pricing date: October 17
Settlement date: October 24
, 2017 (T+5)
Maturity date: October 24
Issue price: 99.603%
Reoffer spread: MS+3bps, CT5+11.8bps
Denomination: USD $1,000
Underwriters: HSBC, J.P. Morgan, TD Securities
Distribution by Geography (%)
Asia Pacific (11%)
Distribution by Investor Type (%)
Central Bank/Official Institution: (21%)
Fund Managers (42%)
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use 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