Bogota, Colombia, June 13, 2019 —IFC, a member of the World Bank Group, issued its first Colombian Peso (COP) denominated green bond to increase awareness of climate-smart investment opportunities in the Latin America and the Caribbean region. The five-year COP 35 billion (about US$ 10 million) issuance was placed in the off-shore market at a 5.2% coupon.
Addressing climate change is a priority for IFC. In 2010, IFC launched its Green Bond Program with the objective to help the development of green bond market and to boost green financing in emerging markets. This is the first COP green bond issued by IFC’s under its Green Bond Program. The proceeds from this issuance will be used for financing private sector projects and activities that promote a sustainable environment in emerging markets, including Colombia. Under its Green Bond Program, IFC has raised US$ 9 billion in 16 currencies globally to support clean energy, climate-smart cities and green financing
“The green bond market is becoming increasingly important—and with this issuance, we are one step closer to raising awareness for the opportunities the asset class offers emerging market investors,” said Juan Gonzalo Flores, IFC’s acting manager for the Andean region. “With this issuance, IFC is demonstrating its commitment to addressing climate change and paving the way for others to follow.”
This Colombian peso issuance adds the fourth Latin America currency into IFC’s Green Bond Program following earlier issuances in the Brazilian real, Peruvian sol and Mexican peso. This transaction creates a climate-friendly investment opportunity in Colombian Pesos encouraging investors to include climate-smart investments into their fixed income portfolios.
“The IFC should be commended for continuing to push boundaries in their pursuit of sustainable capital markets in Latin America and beyond, and we are proud to have partnered with them in this milestone issuance,” said Navindu Katugampola, Head of Green and Sustainability Bond Origination at Morgan Stanley, which was the lead manager for this issuance.
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 2018, we delivered more than $23 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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