Washington, D.C., October 4, 2019—IFC,
a member of the World Bank Group, has issued its first social bond targeting
US retail investors interested in achieving positive social impacts in
emerging markets, including in healthcare, education, and supporting women
The inaugural Social Impact Note, which pays
a 1.70% fixed coupon and features a semi-annual call option after the second
year, raised $2.9 million for select projects including in countries like
The proceeds of the bond, which is part of
IFC’s Social Impact Notes Program, will finance projects that aim to improve
access to affordable healthcare and education, and socioeconomic advancement.
The funds will also be used to support financial institutions that lend
to small and medium enterprises as well as women entrepreneurs.
The Social Impact Notes are distributed exclusively through Incapital’s
John Gandolfo, IFC Vice President &
Treasurer said: “IFC’s inaugural Social Impact Note shows there is
investor appetite for investments in ESG. The issuance has attracted US
investors interested in targeting their financial investments to achieve
positive social outcomes for vulnerable populations.”
Sylvain Kakou, IFC Resident Representative for Haiti said: “We
believe this inaugural issuance is a positive development with investors
participating to support and promote projects with high impact for the
people at a local level living in the most challenging environments, such
“Fixed income investors are increasingly seeking opportunities that demonstrate
impact,” said Jodi Waber, Managing Director for Incapital. “These
IFC Social Impact Notes focused on projects in Haiti have captured the
interest of individual investors served by our broker-dealer partners.
This ongoing capital markets solution for targeting specific development
needs will continue to play an important role in funding IFC's work."
About IFC’s Social Impact Notes Program
As investors are becoming more interested in Environmental, Social and
Governance (ESG) issues, IFC has expanded its retail Impact Notes Program
into the social bond space, where proceeds are invested exclusively in
projects aimed at achieving positive social outcomes for underserved populations.
Earlier this year, IFC launched the Social Impact Notes Program, supporting
small and medium size entrepreneurs’ access to finance while providing
IFC investors with opportunities to invest with impact in countries such
IFC showcased eligible projects to be funded
with the proceeds of the Program, at an event welcoming the broad impact
investor community, finance and project experts, as well as members of
the Haitian community.
Since issuing its first Social Impact Note on September 16, 2019, IFC has
used a portion of the proceeds under the Program to disburse funds to Ayiti
Leasing in Haiti. The funds will enable Ayiti Leasing to provide more leasing
loans to entrepreneurs for transportation, earthmoving equipment, healthcare
and medical equipment, and industrial equipment. Leasing is a financial
instrument that can help small and medium-sized businesses obtain financing
without the typical requirements that commercial banks would consider for
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.