Overview of IFC's Green Bonds
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. Since 2005—when we started to track climate-smart components of our investments and advisory services—IFC has invested $18.3 billion in long-term financing from its own account and mobilized another $11 billion through partnerships with investors for climate-related projects.
IFC was also 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 at 30th June 2017, IFC’s had issued $5.8 billion in green bonds across in twelve currencies..
In addition, IFC plays a leadership role in developing guidelines and procedures for the green bond market as a member of the Green Bond Principles Executive Committee and the IFI Green Bonds Impact Reporting Harmonization Framework.
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)
In April 2017, IFC partnered with asset management company Amundi to launch the world’s largest green-bond fund dedicated to emerging markets—a $2 billion initiative aimed at unlocking private funding for climate-related projects.