IFC Raising $500M for Climate-Friendly Investments

by Roberta Seldon on May 4, 2012

The International Finance Corp. (IFC) is raising $500 million for climate-friendly investments in developing countries via the United States bond market, according to MarketWatch.com.

IFC is offering a “green bond” targeting U.S. investors. Funds raised from the bonds will be put into a separate account to be used exclusively for investing in renewable energy, energy efficiency, and other climate-friendly projects in developing countries.

“This bond will strengthen our ability to invest in innovative energy-efficiency and renewable-energy projects that can help these countries confront climate change,” Lars Thunell, the IFC’s chief executive said, according to MarketWatch.

“Green bond issues in the U.S. market have been rare, compared to Europe and Asia. IFC green bonds are an alternative investment opportunity for this market, offering both development impact and a safe investment vehicle of a top triple-A issuer,” Jingdong Hua, IFC vice president and treasurer, said, according to MarketWatch.

According to MarketWatch, IFC said the move was well-received by investors, which included BlackRock, California State Teachers’ Retirement System (CalSTRS), TIAA-CREF, and United Nations Joint Staff Pension Fund.

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