Washington, D.C., April 27, 2012—IFC,
a member of the World Bank Group, today launched its first green bond in
the U.S. market, raising $500 million for climate-friendly investments
in emerging markets. This is the first IFC green bond targeting U.S. investors.
“IFC is a leader in promoting climate-friendly investment in developing
countries,” said IFC Executive Vice President and CEO Lars Thunell. “This
bond will strengthen our ability to invest in innovative energy-efficiency
and renewable-energy projects that can help these countries confront climate
Funds raised from IFC green bonds are set aside in a separate account for
investing exclusively in renewable energy, energy efficiency, and other
climate-friendly projects in developing countries. Through IFC green bonds,
investors can directly support climate change-related projects in the developing
“The U.S.-dollar market is an integral part of our strategy to support
the development of the private sector,” said Jingdong Hua, IFC Vice President
and Treasurer. “Green bond issues in the U.S. market have been rare, compared
to Europe and Asia. IFC green bonds are an alternative investment opportunity
for this market, offering both development impact and a safe investment
vehicle of a top triple-A issuer.”
The issue was well-received and supports IFC’s strategy of broadening
its appeal to the U.S. domestic investor base. Some investors include BlackRock,
TIAA-CREF, California State Teachers’ Retirement System (CalSTRS) and
United Nations Joint Staff Pension Fund.
IFC promotes climate-friendly investments using its own and donor funds.
In fiscal 2011, IFC’s climate-related investments totaled $1.7 billion.
J.P. Morgan was the lead arranger for the issue.
IFC Green Bond Summary Terms and Conditions
||International Finance Corporation
||Aaa / AAA
||U.S. $500 million
||May 15, 2015
||99.865%, CT3+16.7 |
IFC, a member of the World Bank Group is the largest global development
institution focused exclusively on the private sector. We help developing
countries achieve sustainable growth by financing investment, providing
advisory services to businesses and governments, and mobilizing capital
in the international financial markets. In fiscal 2011, amid economic uncertainty
across the globe, we helped our clients create jobs, strengthen environmental
performance, and contribute to their local communities—all while driving
our investments to an all-time high of nearly $19 billion. For more information,