IFC issues 2 billion Swedish krona green bond to promote biodiversity finance in emerging markets

Washington, D.C., December 17—IFC, a member of the World Bank Group, issued a green bond to promote projects that protect biodiversity and ecosystem services in emerging markets.

The five-year 2 billion Swedish krona bond—equivalent to $184 million—offers investors the opportunity to join in financing IFC investments that promote biodiversity, protect the environment, and drive economic and social development. It was underwritten by Skandinaviska Enskilda Banken AB (SEB).

“We welcome IFC’s increased focus on biodiversity—a longstanding priority for AP7. This investment with IFC enables us to make a meaningful contribution by financing actions to preserve biodiversity,” said Ulrika Lindén, Senior Portfolio Manager at AP7. AP7 was the sole investor in the bond. 

“This issuance marks IFC’s second green bond dedicated to biodiversity, reinforcing our leadership in developing this critical market,” said Tom Ceusters, IFC Director for Treasury Capital Markets and Investments. “By mobilizing private capital for biodiversity projects, we are demonstrating how financial innovation can address sustainability challenges while driving economic growth.”

At the UN Conference of the Parties (COP16) on Biodiversity in Cali, Colombia, a key focus was biodiversity finance, with discussions centered on unlocking private capital to achieve ambitious sustainability goals. This bond responds to the urgent need to mobilize more private sector investments and align them with the long-term goals of the Global Biodiversity Framework.

“COP16 highlighted the need for collaboration with the private sector to raise awareness and create opportunities to deliver on the Global Biodiversity Framework. This transaction is an example of how to put this into practice and deliver positive development impact,” said Ben Powell, Head of Sustainability, Fixed Income at SEB.

In 2022, IFC published the Biodiversity Finance Reference Guide, the world’s first framework to help investors, financiers, companies, and governments identify opportunities to protect and restore biodiversity and ecosystems.

In October 2024, IFC released a supplement, Biodiversity Finance Metrics for Impact Reporting, providing issuers and borrowers with metrics for impact reporting and enhancing alignment with the Green Bond and Loan Principles' core reporting components.

The proceeds of this bond will support biodiversity initiatives, such as the BTG Pactual Timberland Investment Group’s Latin American reforestation strategy which focuses on restoration and conservation in key regions, and BBVA Colombia’s biodiversity bond, the world’s first biodiversity bond aimed at regenerating natural forests in Colombia.