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- $243M bond to finance ocean-friendly and clean water projects in emerging markets.
- Investors gain opportunity to support the blue economy and protect marine ecosystems.
- Bond proceeds will support sustainable water and aquaculture initiatives globally.
IFC issues a 2.6 billion Swedish krona green bond to promote blue finance in emerging markets.
The $243 million bond will finance ocean-friendly projects and improve access to clean water and sanitation in emerging markets. This is IFC’s second bond focused on blue finance, following a 2 billion Norwegian krone bond issued earlier this year for World Water Day.
Tom Ceusters, IFC Director for Treasury Capital Markets and Investments, emphasized the growing momentum in blue finance: “We’ve seen growing interest in blue finance since IFC published guidelines for blue finance that provide investors with guidance on project eligibility criteria. 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, underwritten by SEB, attracted attention from Swedish and international investors, including AP2, AP3, AP7, and Länsförsäkringar Liv, showcasing the broad appeal of sustainable investment.
Ben Powell, Head of Sustainability, Fixed Income at SEB, highlighted the transaction’s success: “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.”
Proceeds will support projects such as a blue bond issued by Thailand’s fifth-largest commercial bank, financing clean water, fisheries, and aquaculture.
Alexander Gusterman, Portfolio Manager at Länsförsäkringar Liv, stated: “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.”
Related Article: Bank of China Lists $400M Green Bond on Nasdaq Dubai
Ulrika Linden, Senior Portfolio Manager at AP7, echoed this sentiment, stressing the importance of focusing on water-related projects: “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.”
This bond reinforces IFC’s commitment to sustainable finance and helps investors engage in meaningful climate-related projects globally.