Washington, D.C., September 5, 2019—IFC,
a member of the World Bank Group, has issued its first Canadian dollar
green bond, attracting strong investor demand and raising CAD750 million
for climate-smart business.
The proceeds of the five-year green bond -
the largest Canadian dollar-denominated deal ever issued by IFC - will
finance IFC investments in green projects, including renewable energy,
green buildings, sustainable forestry, and energy efficiency.
John Gandolfo, IFC Vice President and Treasurer
said: “Crowding in mainstream investors—as IFC has done today with its
first-ever Canadian dollar green bond—is critical to accelerate the development
of the green bond market and find innovative climate finance solutions.
Mobilizing private sector finance for ESG products like green bonds brings
in billions of dollars of capital to sectors such as clean energy, waste
management, energy-efficient buildings, transport and green banking.”
Sean Hayes, Managing Director and Head of
U.S. Syndicate, BMO Capital Markets, said: "It was a ground-breaking
debut green bond by IFC in a new currency. This Canadian dollar deal reached
new investors, achieved IFC’s largest Canadian dollar transaction, and
priced at the tightest spread to the Canadian Mortgage Bond curve ever
by an international Sovereign, Agency or Supranational Issuer. Investment
for impact was on showcase with the investor take-up on this deal.”
Cesare Roselli, Global Head of Supranational,
Sovereign and Agency (SSA) Origination, Scotiabank, said: “A textbook
outcome for IFC’s inaugural green issue in the Canadian dollar market.
This transaction strongly capitalizes on IFC’s green framework to garner
interest from a wide variety of ESG (Environmental, Social and Governance)
Jigme Shingsar, Managing Director, RBC Capital
Markets, said: "IFC’s inaugural Canadian dollar green bond was timed
to perfection and it highlighted IFC’s credit quality and consistent investor
marketing program. IFC has long been a pioneer in the development of ESG
bonds and this issue is an important milestone in the development of the
Canadian green bond market."
IFC is one of the world’s largest financiers
of climate-smart projects for developing countries and has been a leader
in the green bond market since its first issuance in 2010. In 2013, IFC
became the first institution to issue a $1 billion global benchmark green
bond, helping to transform the market from niche to mainstream. IFC
has now issued $9.5 billion of green bonds in 18 currencies since the beginning
of the program.
IFC is committed to increase its climate investments
to 28% from its own account, and mobilize an additional $13 billion a year
in private financing by 2020.
IFC Green Bond Terms
|| IFC (International Finance Corporation)
|| CAD 750 million
|| September 4th, 2019
|| September 13th, 2019
|| September 13th, 2024
|| Luxembourg Stock Exchange, Euronext
||BMO Capital Markets, RBC Capital Markets,
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 2019, we delivered more
than $19 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.