Washington, D.C., April 15, 2010—
IFC, a member of the World Bank Group, today issued its inaugural Green Bond, reflecting its strong commitment to helping reduce greenhouse-gas emissions by supporting climate-friendly projects in developing countries.
SEB, the North European financial group, is the sole manager for the four-year, $200 million fixed-rate bond. As part of IFC’s broader mandate to address climate change, proceeds from the bond will be set aside in a separate “green account” for investing exclusively in renewable energy, energy efficient, and other climate-friendly projects in developing countries. This is the first time IFC is issuing bonds to raise funds that will be put into a separate account tied to a specific pool of loans.
“The Green Bond is yet another example of how IFC is creating innovative financial products that offer both development impact and good return for investors,” said Nina Shapiro, IFC Vice President and Treasurer.
Rachel Kyte, IFC Vice President for Business Advisory Services, said, “IFC has made a commitment to continue growing its climate-friendly business, and the proceeds of the Green Bond will help us achieve those goals.” IFC’s proposed use of proceeds and its environmental and social review procedures were reviewed by Cicero, an independent research center associated with the University of Oslo.
The bond issue highlights increased interest from sustainable and socially responsible institutional investors who wish to support climate change-related projects in developing countries. SEB will offer the bonds to investors through its distribution network.
Projects that may be funded by the Green Bond include rehabilitation of power plants and transmission facilities to reduce greenhouse gas emissions, solar and wind installations, and funding for new technologies that result in significant reductions in greenhouse-gas emissions.
Summary Terms
Amount: $200,000,000
Settlement date: April 26, 2010
Maturity date: April 28, 2014
Issue price: 99.922
Redemption amount: 100%
Coupon: 2.25% per annum
Denomination: U.S. dollar 5,000
Lead manager: SEB
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing capital for private enterprise, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit
www.ifc.org
.
