At IFC, we focus on helping the private sector address climate change through investments and innovative financing, and by addressing regulatory and policy obstacles to green growth.
IFC is one of the world’s largest financiers of climate-smart projects for developing countries, providing financing over the last decade for renewable power, energy efficiency, sustainable agriculture, green buildings and private sector adaptation to climate change. As of FY15, IFC’s portfolio of climate-smart investments has now reached $13 billion supporting $115 billion worth of projects, with over $2 billion of new projects invested in the fiscal year ended in June 2015.
IFC also is one of the earliest issuers of green bonds, launching a green bond program in 2010 to help catalyze the market and unlock investment for private sector projects that support renewable energy and energy efficiency. As of November 2015, IFC has issued $4.3 billion in green bonds, including two benchmark $1 billion issuances that were, at the time, the largest such issuances in the markets.
IFC issues “Use of Proceeds” green bonds. This means that all proceeds from IFC green bonds are set aside in a designated account for investing exclusively in renewable energy, energy efficiency, and other climate-smart projects in developing countries. Investors in IFC green bonds are not exposed to project risks.
IFC is rated triple-A by Standard & Poor’s and Moody’s. Our green bond process complies with the four components identified by the Green Bond Principles:
• Use of proceeds • Process for project evaluation and selection • Management of proceeds (allocation procedures) • Reporting