2018-10-03 15:15
Strong Swedish investor interest leads to two IFC green bond issues in less than one week
On September 27, the International Finance Corporation (IFC), a member of the World Bank Group, announced the completion of USD 100 million green bond due October 2023. This follows the completion of a SEK 500 million tap of January 2023 green bond for IFC, the week before.
IFC is the largest global development institution focused on the private sector in developing countries. With green bond issuance, IFC helps the private sector address climate change through investments and innovative financing. All proceeds from IFC green bonds are set aside in a designated account for investing exclusively in renewable energy, energy efficiency, and other climate-smart projects in developing countries.
Examples of projects that have benefitted from the proceeds of green bond issuance include a construction of 13 solar power plants near the Egyptian city of Aswan. The plants will be part of the larger Benban Solar Park, which, once complete, will be the largest solar installation in the world https://ifcextapps.ifc.org/ifcext/pressroom/ifcpressroom.nsf/0/C47EC9AF0897C57A852581C8003DE257?OpenDocument
Another example consists of a new wind farm established in the Dominican Republic. The farm will diversify the country’s energy matrix and ease its dependence on fossil fuels https://www.ifc.org/wps/wcm/connect/news_ext_content/ifc_external_corporate_site/news+and+events/news/impact-stories/dominican-republic-wind-energy-powers-new-possibilities
Swedish investors AP3 and Swedbank Robur, were among the key institutional investors in the bond transactions. Swedbank was the sole lead arranger of both bond issues.
“Swedbank Robur has the opportunity, together with our customers, to contribute to a more sustainable world while at the same time generate attractive returns. We constantly look for investments that contributes to a more sustainable world. We pay specific attention to environmental and climate related issues and are therefore delighted to be a key investor in IFCs issue of SEK denominated bonds”, says Per Lilja, Head of fixed Income at Swedbank Robur.
“The Swedish investors have always been at the forefront of sustainable investing. They continue to integrate climate considerations into their investment decisions and align with the World Bank Group's ambitious climate strategies” says Elena Panomarenko, Senior Funding Officer, IFC.
For further information:
Laurits Engström, Head of Syndicate, Swedbank Debt Capital Markets, +46 70 399 14 24
Josefine Uppling, Head of Group Press Office, Swedbank, +46 76 114 54 21