IFC gets GBP 350m in maiden Sterling green bond issue

The World Bank’s International Finance Corporation (IFC) has obtained some GBP 350 million (USD 463m/EUR 396m) in fresh funds from its maiden Sterling green bond offering.

The financing will be used to support climate change-related projects, specifically renewable energy and energy efficiency initiatives, IFC said on Friday.

Being the first green bond launched by a multi-lateral development bank in the Sterling market since 2015, the placement attracted strong investor interest, with 52% of demand coming from UK-based investors. The bond, itself, matures on December 15, 2023 and bears a coupon of 1.25%.

“The bond showcases the powerful role that capital markets can play in mobilizing savings for climate-smart finance,” commented Jingdong Hua, IFC’s vice president and treasurer.

The securities will trade on the London Stock Exchange’s dedicated green bond segment.

IFC issued its inaugural green bond in 2010 and since then has sold USD 8.2 billion (EUR 7bn) worth of green bonds globally. It noted that it will continue to focus on supporting investment in climate change initiatives and “addressing regulatory and policy obstacles to green growth.” By 2020, the lender aims to boost climate investments to 28% from its own account and mobilize an additional USD 13 billion in private financing annually.

(GBP 1.0 = USD 1.324/EUR 1.132)

(USD 1.0 = EUR 0.855)

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