Washington, D.C., August 12 2014—IFC,
a member of the World Bank Group, today issued a green bond denominated
in Peruvian soles, raising PEN 42 million soles or approximately $15 million
for climate-friendly investments in emerging markets.
The bond sets a precedent as the first green bond issued by a multilateral
institution in the Peruvian markets. IFC has also issued green bond in
the offshore renminbi markets, as part of a strategy to develop the green
bond asset class in emerging markets.
The sole investor in the twenty-year bond is RIMAC Seguros, Peru’s leading
insurance company. RIMAC Seguros is the first insurance company in Latin
America to invest in green bonds. The lead manager for the transaction
“The green bond market is at a tipping point—and with this issuance,
we are one step closer to raising awareness for the opportunities the asset
class offers emerging market investors,” said IFC Vice President and Treasurer
Jingdong Hua. “By investing in IFC green bonds, RIMAC Seguros is
demonstrating its commitment to addressing climate change and paving the
way for others to follow.”
“Rimac Seguros, as the market leader in insurance services in Peru, has
made Social Responsibility one of its strategic priorities. In this
sense, we are very pleased to become the first insurer in the region to
invest in such bonds. This transaction not only helps to ensure the
reliability of our company in the long term but will support IFC's effort
to improve the environment,” said Jose Martinez Sanguinetti, chief investment
officer with Rimac Seguros.
IFC issues green bonds for private sector investments that support renewable
energy and energy efficiency projects, and to develop the green bond asset
class. Proceeds from IFC green bonds are set aside in a separate account,
and inclusion criteria for eligible investments are independently verified
by the Center for International Climate and Environmental Research-Oslo.
Since 2010, IFC has issued $3.6 billion in green bonds. This includes two
$1 billion benchmark sales in February and November 2013 that helped solidify
the green bond market and the first renminbi-denominated green bond issued
in the offshore Chinese markets.
IFC raises funds in the global capital markets to support its lending in
emerging markets. Focusing on the private sector, IFC invests to support
job creation, access to health care, education, food, infrastructure, and
finance, and other development priorities. IFC’s current annual funding
program is $18 billion across a range of markets and currencies, with U.S.
dollar borrowings accounting for most of the funding activity. IFC Impact
Notes are denominated in U.S. dollars.
IFC has been rated triple-A since its first rating in 1989.
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. Working with private
enterprises in about 100 countries, we use our capital, expertise, and
influence to help eliminate extreme poverty and boost shared prosperity.
In FY14, we provided more than $22 billion in financing to improve lives
in developing countries and tackle the most urgent challenges of development.
For more information, visit www.ifc.org.