World Bank group IFC has issued a green bond worth US$71mn for climate-friendly investments in emerging markets
The proceeds will be used to support investments in renewable energy, energy efficiency, and other areas that aim to reduce greenhouse emissions.
The bond has been issued in South African currency or rand. This is the first instance where a green bond has been issued in South Africa by a multilateral institution.
IFC vice-president and treasurer Jingdong Hua said, “Green bonds are a powerful force for mobilising international and domestic savings for climate finance. IFC will continue to work with RMB, Standard Bank, and other African partners to bring capital-market solutions to key development challenges in the region.”
Funding raised from IFC green bonds are allocated within IFC in a separate account, and inclusion criteria for eligible investments are independently verified by the Center for International Climate and Environmental Research-Oslo, or CICERO, clarified the IFC.
