IFC green bond proceeds will be funneled to emerging markets: The International Finance Corporation (IFC) has raised CAD 1 bn (USD 743.9 mn) in partnership with the National Bank of Canada Financial Markets (NBF) through a three-year green bond issuance, according to a statement. The IFC aims to use the funds to unlock private investment for climate-related projects in emerging markets, the statement added. It is unclear from the statement which specific emerging markets will be targeted with the proceeds from the issuance. Canada’s Scotiabank served as the lead manager on the benchmark green bond transaction.

What kind of projects are eligible? Through its established Green Bond Framework (pdf), the IFC plans to pump the raised funds into a variety of green sectors, including renewable energy, energy efficiency, green buildings, clean transport, as well as biodiversity and ocean conservation and water protection.

Demand for the green finance vehicle was big: The trade attracted orders over CAD 1.5 bn, making it the IFC’s second highly successful CAD issuance of the year and their largest CAD trade to date “with a well oversubscribed book,” head and Managing Director at NBF Scott Graham said.

About IFC’s Green Bond Framework: Since the launch of the green bond program in 2010, IFC has issued over USD 13 bn through 199 green bonds in 21 currencies, the statement disclosed. According to the framework’s 2022 summary report, 25.6 mn tons of CO2 equivalent per year are curtailed as a result of the projects launched through the green bond program. Last year, the IFC broadened its Green Bond Framework to incorporate elements of blue finance and biodiversity through its publishing of the Guidelines for Blue Finance.

The IFC is a major contributor to green funding in the region: Last month, Egypt’s largest private lender CIB said it is scheduled to receive a USD 100 mn loan from the IFC to help fund the bank’s climate finance endeavors. Morocco’s Mohammed VI Fund for Investment (M6FI) signed an agreement with the International lender for support in identifying and financing sustainable infrastructure projects in the kingdom and the IFC approved a green loan worth EUR 100 mn to state-owned fertilizer and phosphate giant OCP Group earlier this year to help finance the development of four solar plants yielding 202 MW. In February, IFC signed two separate agreements with state-owned Abu Dhabi Fund for Development and Masdar to jointly invest in the energy transition for emerging markets. IFC also helped fund a 560 MW solar plant and 505 MW wind farm in Egypt developed by UAE’s Amea Power.

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