Washington, D.C., September 5, 2019 —IFC, a member of the World Bank Group, has issued its first Canadian dollar green bond, attracting strong investor demand and raising CAD750 million for climate-smart business.
The proceeds of the five-year green bond - the largest Canadian dollar-denominated deal ever issued by IFC - will finance IFC investments in green projects, including renewable energy, green buildings, sustainable forestry, and energy efficiency.
John Gandolfo, IFC Vice President and Treasurer said: “Crowding in mainstream investors—as IFC has done today with its first-ever Canadian dollar green bond—is critical to accelerate the development of the green bond market and find innovative climate finance solutions. Mobilizing private sector finance for ESG products like green bonds brings in billions of dollars of capital to sectors such as clean energy, waste management, energy-efficient buildings, transport and green banking.”
Sean Hayes, Managing Director and Head of U.S. Syndicate, BMO Capital Markets, said: "It was a ground-breaking debut green bond by IFC in a new currency. This Canadian dollar deal reached new investors, achieved IFC’s largest Canadian dollar transaction, and priced at the tightest spread to the Canadian Mortgage Bond curve ever by an international Sovereign, Agency or Supranational Issuer. Investment for impact was on showcase with the investor take-up on this deal.”
Cesare Roselli, Global Head of Supranational, Sovereign and Agency (SSA) Origination, Scotiabank, said: “A textbook outcome for IFC’s inaugural green issue in the Canadian dollar market. This transaction strongly capitalizes on IFC’s green framework to garner interest from a wide variety of ESG (Environmental, Social and Governance) investors.”
Jigme Shingsar, Managing Director, RBC Capital Markets, said: "IFC’s inaugural Canadian dollar green bond was timed to perfection and it highlighted IFC’s credit quality and consistent investor marketing program. IFC has long been a pioneer in the development of ESG bonds and this issue is an important milestone in the development of the Canadian green bond market."
IFC is one of the world’s largest financiers of climate-smart projects for developing countries and has been a leader in the green bond market since its first issuance in 2010. In 2013, IFC became the first institution to issue a $1 billion global benchmark green bond, helping to transform the market from niche to mainstream. IFC has now issued $9.5 billion of green bonds in 18 currencies since the beginning of the program.
IFC is committed to increase its climate investments to 28% from its own account, and mobilize an additional $13 billion a year in private financing by 2020.
IFC Green Bond Terms
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Issuer:
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IFC (International Finance Corporation)
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Amount:
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CAD 750 million
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Pricing date:
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September 4 th , 2019
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Settlement date:
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September 13 th , 2019
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Maturity date:
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September 13 th , 2024
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Issue price:
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99.477%
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Reoffer yield:
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1.484%
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Coupon:
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1.375%
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Listing:
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Luxembourg Stock Exchange, Euronext Dublin
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Lead Managers:
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BMO Capital Markets, RBC Capital Markets, Scotiabank
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Investor Distribution
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By Type:
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By Region:
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Bank
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58%
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Canada
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50%
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CB/OI
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26%
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ASIA
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26%
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FM
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16%
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EMEA
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16%
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Americas
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8%
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About IFC
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In fiscal year 2019, we delivered more than $19 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org .
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