Washington, D.C., September 8, 2014—IFC,
a member of the World Bank Group, is launching a new program that for the
first time allows U.S. individual investors to buy triple-A rated IFC bonds
that support renewable energy and energy efficiency investments in developing
The offerings, called “IFC Impact Notes - Green Bonds”, expand the IFC
Impact Notes program, introduced in March 2014 as a triple-A rated bond
alternative to other high-grade securities such as those issued by Government
Sponsored Enterprises, or GSEs. IFC will be the first issuer to regularly
offer green bonds to individual investors in the U.S.
IFC Impact Notes have the potential to offer more attractive yields than
U.S. Treasuries with equivalent maturities. A wide range of investors already
participate in the program, with IFC Impact Notes sales in excess of $60
million since the launch.
IFC raises funds in the global capital markets to support investments that
promote economic growth and job creation in developing countries. Green
bonds are issued under IFC’s regular borrowing program.
Proceeds from IFC green bonds are set aside in a separate account for investing
exclusively in renewable energy and energy efficiency projects. Criteria
for projects eligible for funding from IFC green bonds are independently
verified by the Center for International Climate and Environmental Research-Oslo.
Since 2010, IFC has issued $3.6 billion in green bonds in various structures
and currencies including Chinese renminbi, Japanese yen and U.S. dollars.
This includes two benchmark $1 billion issues in 2013 that set a precedent
as the largest green bonds in the market at time of issuance and helped
solidify the market.
Year to date, there have been $20 billion in green bonds issued by development
banks, insurance agencies, electricity companies and a range of other agencies.
“The green bond asset class is gaining momentum as more and more investors
and issuers consider the environmental impact of their investment and business
strategies,” said Jingdong Hua, IFC Vice President and Treasurer.
“Green bonds issued under the IFC Impact Notes program will enable individual
investors in the U.S. to support investments that help address the impacts
of climate change in developing countries and globally”, he said.
"We welcome the opportunity to add IFC Green Bonds to our new values-based
investing platform - Legacy. IFC Green Bonds provide an attractive
investment proposition for individual investors that supports climate-related
projects while also promoting economic growth around the globe", said
Louise Herrle, Managing Director of Capital Markets for Incapital.
"IFC has been one of the pioneers in the green bond market and in
raising awareness about the opportunities in climate-friendly investment.
Incapital is very pleased to once again partner with IFC as they
expand their innovative Impact Notes program."
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 has been rated triple-A since its first rating
IFC Impact Notes are denominated in U.S. dollars.
IFC Impact Notes—Green Bonds Terms and Conditions
IFC Impact Notes – Green Bonds are ten-year, non-call three-year step-up
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