Green bonds play an increasingly important role in raising private capital to fight climate change—attracting mainstream capital investors to projects in renewable energy, energy efficiency, and other sustainability-driven industries.
IFC is a recognized leader in the field. Multilateral development banks were the sole issuers of green bonds until 2013. Then In 2013, IFC issued a landmark $1 billion offering, becoming the first global institution to reach that historic threshold. The size of the bond was an innovation towards building market depth and liquidity. Subsequently, corporate issuers came to market and 2013 ended with a record volume of $11 billion of issuance, a roughly 300 percent increase from the previous year.
Since 2010, we have issued nearly $7.3 billion in green bonds in our name, and helped client banks in Colombia, the Philippines, Morocco, and other countries begin to do the same. To help grow the market, we have teamed with the leading European asset manager Amundi to launch Amundi Planet-Emerging Green One—the world’s largest green-bond fund dedicated to emerging markets— to be deployed in about $2 billion of green bonds issued by financial institutions active in emerging markets. Our $325 million investment is attracting far more funding from institutional investors.
We also help set the industry’s standards by sitting on the executive committee of the Green Bond Principles—voluntary guidelines promoting transparency, disclosure, and integrity in the market. In 2017, Environmental Finance magazine gave IFC its Best Impact Reporting award, honoring our work to give investors easy-to-understand metrics in green bonds.
Read more: ifc.org/greenbonds
Since 2005 IFC has invested more than $18 billion in long-term financing and mobilized another $11 billion through partnerships with investors for climate-related projects.