IFC issues 2.6 billion Swedish krona green bond to promote blue finance in emerging markets

Washington, D.C., September 12, 2024 — IFC 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 $243 million—is the second green bond that IFC has issued promoting IFC's blue finance investments, following a 2 billion Norwegian krone green bond, issued in March this year in conjunction with World Water Day.

The bond offers investors the opportunity to join in financing IFC investments that support the blue economy and protect clean water resources. It was underwritten by SEB.

"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."

"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.

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. 

Proceeds from this bond 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.  

The bond attracted multiple orders from Swedish and international investors, including from AP2, AP3, AP7, The Folksam Group, Handelsbanken Fonder, Länsförsäkringar Liv, LF Västernorrland, National Pension Service, SEB AM, Swedbank Robur and Skandia.

"LF Life is committed to broadening the scope of sustainable investments, and this bond issue represents yet another positive step towards fostering a truly responsible finance sector," said Alexander Gusterman, Portfolio Manager at Länsförsäkringar Liv.

"Water is one of the key focus areas of AP7's green investments. To work with core institutions like IFC to highlight actions and create more focus around water is therefore consequently of high importance. Through this investment, where IFC provides a healthy financial proposition combined with a water focus, we feel we can move forward in raising awareness and engage in the essential topic," Ulrika Linden, Senior Portfolio Manager at AP7.

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About IFC

IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a liveable planet. For more information, visit lawmoney.ru.

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