Washington, D.C., March 22, 2024 — On World Water Day, IFC announced the issuance of its first green bond designed to promote ocean-friendly projects and critical clean water resource protection in developing countries.
Listed on the London Stock Exchange, the green bond was priced on March 19, 2024, and will be issued on March 26, underwritten by Stockholm-based Skandinaviska Enskilda Banken AB.
The five-year, fixed-rate, 2 billion Norwegian krone bond—equivalent to $187 million—offers investors the opportunity to join in financing IFC projects that promote access to water and basic sanitation, such as providing sewage services in Brazil and promoting sustainable fishing in Ecuador.
"Investor demand for blue finance has grown with the increased threat of climate change to global water resources, marine ecosystems, and economic growth," said Tom Ceusters, Director, Treasury Market Operations at IFC. "IFC has taken a leading role in building investor confidence in blue finance and catalyzing blue bond issuance."
"SEB is very happy to support IFC's green bond issuance in connection with World Water Day, raising awareness of the water related projects and initiatives that are part of the IFC green bond portfolio," said Ben Powell, Head of Sustainability, Fixed Income at SEB. He noted that, according to the World Water Council and OECD, "investment needed in water-related infrastructure stands at $6.7 trillion by 2030 and $22.6 trillion by 2050."
Funds from IFC green bonds help unlock investment for private sector projects designed to support renewable energy including solar and wind, green buildings, clean public transportation, and other initiatives that cut greenhouse gases and help developing countries reach their decarbonization goals.
IFC's latest green bond issuance extends its long-standing work in green finance into blue finance, a pioneering area focused on harnessing the power of financial markets to support climate-related projects related to water, including ocean and coastal resources management.
In 2022, IFC published the Guidelines for Blue Finance to support the expansion of the market. Following the publication of the guidelines, IFC expanded its Green Bond Framework to include categories such as biodiversity and ocean and water conservation, as well as more robust climate adaptation selection processes and climate mitigation.
The ocean economy, or economic activities related to marine livelihoods and ecosystems, is on track to generate more than $3 trillion annually by 2030 and employ about 40 million people, according to an OECD report.
The issuance will fund projects such as Sanasa, a water utility company in Campinas, Brazil, which provides water to the city's 1.3 million people.
Final Terms
Issuer: IFC (International Finance Corporation)
Issue ratings: Aaa / AAA (stable / stable)
Format: Registered, CGN
Currency: Norwegian Krone ("NOK")
Amount: 2,000,000,000
Pricing Date: 19 March, 2024
Issue Date: 26 March, 2024
Maturity: 26 March, 2029
Coupon: 4% per annum, payable annually
Listing: London Stock Exchange
Denominations: NOK 2,000,000
Documentation: Global Medium-Term Note Program
Underwriter: Skandinaviska Enskilda Banken AB
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
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