Washington, D.C., February 14, 2013—IFC,
a member of the World Bank Group, today issued a $1 billion green bond
that will be used to support IFC climate-friendly projects in developing
countries. The bond sets a precedent as the largest green bond issue to
date and was principally allocated to socially responsible investment portfolios.
By making the three-year bond a benchmark issue available to investors
globally, IFC aims to strengthen this growing asset class. The bond, which
was heavily oversubscribed, was sized to address the demand from an increasing
number of investors interested in climate-related opportunities.
“IFC is ramping up its climate-related investments because the private
sector can play a leading role in addressing climate change,” said Jingdong
Hua, IFC VP and Treasurer. “Through its Green Bond Program, IFC enables
large-scale investors to support projects related to climate change in
In FY12, IFC invested $1.6 billion in climate-related investments—more
than 10 percent of the institution’s overall commitments for the year.
About 70 percent of IFC’s investments in the power sector involved energy
efficiency and renewable energy. By FY15, IFC expects to double its
climate-related investments to roughly $3 billion per year.
Stephanie Miller, IFC Director of Climate Business, said: “The IFC Green
Bond Program supports one of IFC’s strategic priorities to develop and
promote innovative financial products that attract greater investments
to support renewable energy, energy efficiency, and other climate-friendly
The bond received overwhelming support from investors focused on promoting
socially responsible investments. Some of the participants in the bond
include, 3M Company, Blackrock, the California State Teachers’ Retirement
System (CalSTRS), Calvert Investments, Ellomay Capital, Fjärde AP-fonden,
Ford Motor Company, Local Government Super (LGS), Parnassus Investments,
Praxis Intermediate Income Fund , SSGA High Quality Green Bond Fund, TIAA-CREF,
and the Washington State Investment Board among others.
Maria Kamin, Manager of Environmental, Social and Governance Research at
Parnassus Investments, said: "The IFC Green Bond complements our responsible
investment strategies. We focus on incorporating environmental, social,
and governance analysis into our investment research. By giving investors
in the Parnassus Fixed-Income Fund exposure to this unique bond, we can
further support climate-related investments and receive a positive financial
Bill Hartnett, Head of Sustainability at Local Government Super (LGS),
said: “LGS is proud to be the ultimate owner of part of this IFC
Green bond issuance. The green bonds appeal to LGS on many fronts. They
are triple-A-rated notes with competitive terms. They are financing much
needed green infrastructure projects globally.”
IFC green bonds support projects to reduce greenhouse emissions—for example,
by rehabilitating power plants and transmission facilities, installing
solar and wind power, and providing funding for new technologies that result
in significant reductions in emissions. To date, IFC has issued about $2.2
billion in such bonds.
Criteria for the use of IFC green bond proceeds are certified by Cicero,
an independent research center associated with the University of Oslo.
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, mobilizing
capital in international financial markets, and providing advisory services
to businesses and governments. In FY12, our investments reached an all-time
high of more than $20 billion, leveraging the power of the private sector
to create jobs, spark innovation, and tackle the world’s most pressing
development challenges. For more information, visit www.ifc.org.