IFC raises £461m from first Canadian green bond

The proceeds of the five-year green bond will finance investments in projects including renewable energy, green buildings and energy efficiency

The International Finance Corporation (IFC), a member of the World Bank Group, has issued its first Canadian green bond, raising CAD$750 million (£461m).

The proceeds of the five-year green bond will finance investments in projects including renewable energy, sustainable forestry, green buildings and energy efficiency.

IFC is one of the world’s largest financiers of climate-smart projects for developing countries and became the first institution to issue a $1 billion (£0.8bn) global benchmark green bond.

It has committed to increase its climate investments to 28% and mobilise an additional $13 billion (£10.5bn) a year in private financing by 2020.

IFC Vice President and Treasurer John Gandolfo said: “Crowding in mainstream investors – as IFC has done today with its first-ever Canadian dollar green bond – is critical to accelerate the development of the green bond market and find innovative climate finance solutions.

“Mobilising private sector finance for ESG [Environmental, Social and Governance] products like green bonds brings in billions of dollars of capital to sectors such as clean energy, waste management, energy efficient buildings, transport and green banking.”

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