IFC subscribes to USD 100m green bond by Banco Galicia
Power lines in Argentina. Author: Alejandro Gómez. License: Creative Commons, Attribution 2.0 Generic.
The International Finance Corporation (IFC) has subscribed to a USD-100-million (EUR 80.4m) green bond issued by Argentina’s Banco Galicia.
The proceeds from the bond issue will allow the privately-owned bank to support climate change mitigation projects, including energy efficiency, renewable energy, and sustainable construction projects.
IFC estimates that the projects enabled by this bond will reduce greenhouse gas emissions in Argentina by about 157,500 metric tons of carbon dioxide (CO2) per year.
The bond, the first issued by a private financial institution in the country, has a 7-year tenor, providing a source of medium to longer-term finance that is not commonly available in Argentina.
Argentina is currently chasing after a target to produce 20% of its electricity from renewable sources by 2025.
Banco Galicia’s is the 11th green bond that IFC has subscribed to since 2015 across seven emerging markets. Under its Green Bond Program, IFC has also issued 90 green bonds across 12 currencies amounting to USD 7.3 billion since 2010.
In Argentina alone, IFC has committed approximately USD 2 billion in sustainable private sector projects over the past 18 months, the institution said.