Washington, D.C., June 17, 2014—IFC,
a member of the World Bank Group, today issued a 500 million renminbi-denominated
green bond (approximately $80.29 million) that will be used to support
climate-friendly investments in emerging markets. The bond is listed on
the London Stock Exchange and sets a precedent as the first green bond
issued by a multilateral institution in the offshore Chinese markets.
“IFC is committed to supporting the development of China’s capital markets,
which are key to creating access to finance for the private sector and
especially small and medium businesses. We will continue to seek opportunities
to help deepen liquidity and extend the yield curve for offshore renminbi
assets,” said IFC Vice President and Treasurer Jingdong Hua. “The addition
of the renminbi as a new green bond currency also supports our goals to
strengthen this important asset class.”
The bond, which yields 2%, saw demand from investors in Asia and Europe.
HSBC is the sole lead manager for the bond.
In March, IFC became the first multilateral institution to list renminbi-denominated
bonds on the London Stock Exchange, raising 2 billion renminbi from international
investors. IFC previously pioneered the international issuance of renminbi-denominated
bonds in China (Panda bonds) and Hong Kong (Dim Sum bonds). IFC was also
the first to set up a program to regularly issue offshore renminbi-denominated
IFC green bonds support projects to reduce greenhouse gas emissions—for
example, by rehabilitating power plants and transmission facilities, installing
solar and wind power, and providing financing for technology that helps
generate and use energy more efficiently. Criteria for the use of IFC green
bond proceeds are certified by Cicero, an independent research center associated
with the University of Oslo.
In FY13, IFC invested a record $2.5 billion in climate-smart projects—nearly
14 percent of the institution's overall commitments for the year. About
two thirds of IFC's investments in the power sector involved energy efficiency
and renewable energy. By FY15, IFC expects its climate-related investments
to make up 20 percent of its long-term financing, or $3 billion per year.
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,