IFC Issues Azerbaijani Manat Bond to Support Local Businesses and Green Projects

Washington D.C., December 17, 2024—IFC, a member of the World Bank Group, has issued a bond denominated in Azerbaijani manat (AZN) to help expand access to loans for micro, small, and medium-sized enterprises (MSMEs) to support low-income households and fund green projects in Azerbaijan.

The four-year bond, which raised 34 million AZN—equivalent to $20 million—will increase access to climate finance for businesses and low-income households, supporting the growth of climate-focused projects in the country.

Listed on the Luxembourg Stock Exchange, the bond boosts social resilience and broadens access to green technologies to a wider population, with Standard Chartered Bank as the dealer.

“By leveraging capital markets, IFC enables businesses to access local currency financing, reducing the risks of foreign currency borrowing,” said Keshav Gaur, IFC’s Director of Treasury Client Solutions. “This bond not only supports private businesses and environmentally sustainable projects but also contributes to the diversification of Azerbaijan’s economy, fostering resilience and long-term growth.”

“We value our long-standing collaboration with IFC, which has consistently provided us with access to local interest rates in attractive emerging markets, such as Azerbaijan in this case, while ensuring the transparent and sustainable use of proceeds. We look forward to further engagement to develop our asset class and promote sustainable projects,” said Theodor Kirshner, Fund Manager at Capitulum, one of the investors in the bond.

With a four-year maturity, the bond will help attract additional longer-term financing that is not readily available in the market. Since 2020, IFC has issued over $189 million in AZN for tenors ranging from one to four years, at rates up to 300 basis points below the government benchmark.

IFC supports offshore issuances by diversifying the investor base for local currencies and enhancing market liquidity.