IFC Issues Benchmark Three-Year Green Bond, Unlocking 1 Billion Canadian Dollars for Climate-Friendly Projects

Strategic Insights -

The International Finance Corp. (IFC), a member of the World Bank Group, has issued a benchmark three-year green bond, raising 1 billion Canadian dollars to support climate-friendly projects in emerging markets. The proceeds of the bond will finance projects under IFC's Green Bond Framework, including renewable energy, energy efficiency, green buildings, clean transport, and biodiversity conservation, as well as ocean and water protection.

Key Takeaways:

  • The 1 billion Canadian dollar bond is IFC's largest green bond in the Maple market to date, attracting orders over 1.5 billion Canadian dollars from a broad range of investors worldwide.
  • The trade generated strong interest from central banks, official institutions, bank treasuries, and asset managers, demonstrating investors' focus on sustainable investments and trust in IFC's name.
  • IFC's green bond program, launched in 2010, has issued over 13 billion dollars through 199 green bonds and taps in 21 currencies, supporting new investor participation and reinforcing issuers' commitment to the Canadian dollar market.
  • National Bank of Canada Financial Markets, RBC Capital Markets, and Scotiabank acted as joint lead managers for the transaction, citing the success of the bond as a testament to the appeal of the IFC name and its Green Bond Framework among Canadian investors.
  • The bond's strong performance and green bond framework underpin exceptional credit quality, making it a rare combination of tightening and upsize.

Statistics:

  • 1 billion Canadian dollars raised to support climate-friendly projects in emerging markets.
  • 1.5 billion Canadian dollars in orders, generating strong interest from investors worldwide.
  • 13 billion dollars issued through 199 green bonds and taps in 21 currencies since the launch of the green bond program in 2010.
  • 21% of Distribution Statistics come from Canada.
  • 44% come from Europe, indicating strong investor interest in the bond.

Sources:

  • IFC News Release, August 12 [1]
  • IFC Green Bond Terms [2]
  • International Finance Corporation. (n.d.). PressRoom. Retrieved from https://pressroom.ifc.org/all/pages/PressDetail.aspx?ID=27699 [3]