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- $500M Raised: CCMM’s first-ever bond secured $500 million, backed by global investor interest exceeding $3 billion.
- Accelerating Climate Finance: The issuance supports clean energy projects in developing countries by frontloading future reflows from CIF’s Clean Technology Fund.
- Strong Market Confidence: Rated AA+/Aa1, the CCMM bond issue reflects significant demand for high-quality ESG investment opportunities.
The Climate Investment Funds (CIF) Capital Markets Mechanism (CCMM) made a historic market debut with a $500 million inaugural bond. The bond, rated AA+/Aa1 by Fitch and Moody’s, drew global investor interest with an order book surpassing $3 billion—over six times the bond’s value.
The 3-year bond, priced at +36.6 basis points over the 3-year U.S. Treasury, offers a semi-annual yield of 4.838% and is listed on the International Securities Market of the London Stock Exchange. The issuance is the first under CCMM’s borrowing program announced during COP29 in November 2024.
Driving Climate Investments
Introduced at COP26, CCMM channels future Clean Technology Fund (CTF) reflows into immediate investments for low-carbon technologies, such as renewable energy, sustainable transport, and industry decarbonization. The World Bank, serving as CCMM’s Treasury Manager, also acts as the Trustee and host of the CIF Secretariat.
Tariye Gbadegesin, CEO of Climate Investment Funds:
“Today is a historic moment for climate finance. The inaugural CCMM bond issue has exceeded all expectations, with our order book over six times oversubscribed. This is an enormous vote of confidence and a sign of the keen market interest in backing high-quality clean energy projects. These bonds will multiply the funds available for scaling up clean technology and infrastructure in developing countries—not in ten years, but now, when it’s most critically needed.”
Mobilizing Private Capital
The initiative underscores the pivotal role of private capital in financing the global energy transition. CIF’s funding model relies on partnerships with six AAA-rated multilateral development banks (MDBs), which implement high-impact CTF projects.
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Anshula Kant, Managing Director and CFO, World Bank Group:
“We are grateful for the global support from investors to successfully launch this inaugural bond. By helping mobilize private capital, this ambitious program will contribute financing to clean energy projects and investments in emerging economies, building a sustainable future for all.”
Strategic Financial Collaboration
Global financial institutions played a crucial role in the success of CCMM’s market debut.
Bernie Mensah, President of International, Bank of America:
“Congratulations to the CCMM team and the World Bank, acting in its capacity as Treasury Manager, on the successful execution of CCMM’s inaugural bond issue. The proceeds raised from the mobilization of private sector finance will enable the Clean Technology Fund to build out its efforts in supporting clean energy advancements in developing countries. Bank of America is honored to be a part of this important collaboration.”
Alain Papiasse, Chairman, BNP Paribas Corporate and Institutional Banking:
“This is a groundbreaking step for the Clean Technology Fund. BNP Paribas is delighted to have supported the Climate Investment Funds (CIF) Capital Markets Mechanism (CCMM) in bringing its first transaction to the market and expanding its financing capacity for clean technologies in developing countries. There has been a strong response from investors, who consider CCMM to be a pure-play green/sustainable ESG investment offering high-quality fixed income investment opportunities. The World Bank and the CCMM team should be commended for their excellent work—from the legal exercise to the investor marketing activity. It is very gratifying to see this transaction become a reality.”
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