IFC, a part of the World Bank Group, has issued a green bond designed to promote ocean-friendly projects and improve access to clean water and sanitation in emerging markets.
The five-year, 2.6 billion Swedish krona bond—equivalent to USD$243 million—is the second green bond that IFC has issued promoting its blue finance investments, following a 2 billion Norwegian krone green bond, issued in March this year.
Proceeds from this bond, which was underwritten by SEB, will support blue projects such as a green and blue bond issued by the fifth largest commercial bank in Thailand that is helping to finance clean water, fisheries, and aquaculture.
In 2022, IFC published the Guidelines for Blue Finance to harness the power of financial markets to support climate-related projects focused on water, including ocean and coastal resources management. Following the publication of the guidelines, IFC expanded its Green Bond Framework to include categories such as biodiversity and ocean and water conservation, as well as more robust climate adaptation selection processes and climate mitigation.
“We’ve seen growing interest in blue finance since IFC published guidelines for blue finance that provide investors with guidance on project eligibility criteria,” said Tom Ceusters, IFC Director for Treasury Capital Markets and Investments. “Funds raised through our Green Bond Program support investments into blue projects that improve the health of marine ecosystems, provide access to clean water, and strengthen climate resilience.”
The bond attracted multiple orders from Swedish and international investors, including from AP2, AP3, AP7, The Folksam Group, Länsförsäkringar Liv, LF Västernorrland, National Pension Service, SEB AM, Swedbank Robur and Skandia.
“This transaction is a further successful demonstration of funding that gives IFC and its investors a way to engage and raise awareness around the topic of blue finance and highlight IFC projects and initiatives that are creating positive development impact,” said Ben Powell, Head of Sustainability, Fixed Income at SEB.
