Green and Social Bond Impact Report Financial Year 2023 1 About IFC IFC – a member of the World Bank Group – is the largest global development institution focused on the private sector in emerging markets and developing economies. We work in more than 100 countries, using our capital, expertise, and influence to create jobs and raise living standards, especially for the poor and vulnerable. In fiscal year 2023, IFC committed a record US$43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to improve people’s lives as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org Coverphoto by Dominic Chavez/IFC Table of Contents 3 A Letter from the Treasurer 4 Green Bond Program – FY23 Highlights 5 Green Bond Program – Cumulative Highlights 6 Social Bond Program – FY23 Highlights 7 Social Bond Program – Cumulative Highlights 8 IFC Climate Business Overview for FY23 10 Biodiversity Finance – The New Frontier of Green and Sustainable Finance 12 An Overview of IFC’s Green and Social Bond Issuances in FY23 14 Featured Green Project Story: Helping Ecuador Develop a Thriving Blue Finance Market 15 Featured Green Project Story: Improving Water and Sanitation Infrastructure in Brazil 16 Featured Social Project Story: Supporting Women-Owned Businesses in Mongolia 17 Featured Social Project Story: Enhancing Access to Financial Services in Africa 19 Green Bond Eligible Project Commitments – By Region 20 Green Bond Eligible Project Commitments – By Sector 21 Green Bond Eligible Project Commitments for FY23 28 Social Bond Eligible Project Commitments – By Region 29 Social Bond Eligible Project Commitments – By Sector 30 Social Bond Eligible Project Commitments for FY23 42 Appendix A: IFC Green Bond Program Process 46 Appendix B: IFC Social Bond Program Process 50 Authors and Disclaimer 1 Photo by Amit Rarakha for KKCF/IFC 2 A Letter from the Treasurer John Gandolfo IFC Vice President and Treasurer Treasury & Mobilization Nearly four years since the pandemic precipitated a catastrophic decline In FY23, our social bond program funded projects that support smallholder in economic growth that pushed millions of people back into extreme farmers in Kosovo, agriculture cooperatives in Burkina Faso and women- poverty, many developing countries are still struggling to recover. owned businesses from Mauritania to Zambia and the Kyrgyz Republic. Our social bonds are financing the distribution of rice in rural Bangladesh, vaccine An escalating climate crisis, food insecurity, rising debt, and new conflicts production in Brazil, and are making higher education available for low- pose additional setbacks, hindering efforts to alleviate poverty and boost income families in Chile. Projects using our social bond proceeds are expected prosperity. to reach over one hundred and thirty million beneficiaries across the globe IFC has responded to these challenges with resolve and speed. We have over the next six years. ramped up our support to the private sector to help sustain economies IFC has come a long way since we issued our first green bond 13 years ago and and rebuild from these shocks. In FY23, we made over US$43 billion in total began to shape industry standards as a founding member of the Green, Social, investment commitments, the largest volume in our history. We set a record and Sustainability-Linked Bond Principles. Together with our partners, we for climate commitments and exceeded our gender targets. We deployed have also established strategies that enable us to mobilize additional capital an array of financial instruments to help raise additional private capital for to support green, blue and social bonds and grow nascent sustainable bond development and set standards for sustainable investing. markets in the countries in which we operate. Our green and social bonds are an important part of this mix, helping us raise As a responsible market participant, with a comprehensive and integrated money for impact while providing an attractive return to investors. In FY23, approach to sustainability best practices and standards, IFC is taking bold our green and social bond issuances made up a quarter of IFC’s annual funding strides to develop the global sustainable bond market while working towards program. These included the largest Australian dollar green bond issued by a safeguarding the integrity of the industry. We thank our investors for the multilateral development bank in 2022, and our first Kauri social bond. interest and support they have shown over the years. Through this report, I We updated our green bond framework to include new ocean, water, and am pleased to present the projects that our green and social bond programs biodiversity categories. As a result, in FY23, our green bonds financed projects have financed in FY23 and detail their anticipated impact. that provide access to water and basic sanitation and sewage services to thousands of homes in Brazil and promote sustainable fishing in Ecuador. Projects financed using the proceeds of our green bonds in FY23 are expected to reduce greenhouse gas emissions by 3.3 million metric tons of CO2 equivalent per year. 3 Green Bond Program – FY23 Highlights IFC raised in $2 6 Expected to reduce billion currencies1 Greenhouse gas emissions through by 3.3 million metric tons 20 green bonds of CO₂ equivalent per year Equivalent to over 371 million gallons (incl. taps) of gasoline consumed across 22 projects in Expected to produce 4.3 million megawatt hours 8 Climate Adaptation Transport of renewable energy sectors Sufficient to power 410,967 U.S. homes $1.7 over Green Banking Green Buildings per year billion committed 15 countries2 Solar Energy Waste Management Expected to save Water and 911,000 kilowatt hours of Wind Energy Wastewater Management energy per year Equivalent to 723,182 pounds of coal burned FY23 green projects align with the following Sustainable Development Goals: Expected to build 1,366 megawatts of renewable energy capacity 1 Currencies are Australian dollars, Korean wones, Norwegian kroner, Swedish kronor, South African rand and U.S. dollars. 2 13% of which are low-income countries. 4 Green Bond Program – Cumulative Highlights Anticipated Impact Highlights through Expected to reduce Between FY10 - FY23, IFC raised 198 green bonds Greenhouse gas emissions by 28.4 million (incl. taps) metric tons of CO₂ equivalent per year $12.6 in Equivalent to over 3.2 billion gallons of gasoline consumed billion 21 currencies Expected to produce 36.1 million megawatt hours in renewable energy Sufficient to power 3.4 million U.S. homes per year Expected to save 869.5 million kilowatt hours of energy per year 285 Equivalent to 690 million pounds of coal burned projects committed totaling Expected to build $12.1 billion 9,753 megawatts of renewable energy capacity Expected to green 863,685 square meters of buildings 5 Social Bond Program – FY23 Highlights Over the next 6 years through across 15 IFC’s social bond projects committed in FY23 are expected to5 $2.7 IFC raised social bonds reach 130,691,211 beneficiaries by: billion committed 56 projects $1.2 (incl. taps) in Providing 8,237,149 5 billion microfinance loans in currencies4 Reaching 218,770 farmers over 8 sectors Enrolling 100,966 students 35 countries3 Reaching 3,366,315 underserved Information and Communication customers Agribusiness Technology (ICT) Providing 118,000,000 vaccines Gender Finance Housing Finance Providing 96,495 housing loans Education COVID-19 Response Finance Providing 641,365 loans to women Health Microfinance Providing 30,151 loans to small and medium enterprises FY23 social projects align with the following Sustainable Development Goals: 3 50% of which are low-income countries. 4 Currencies are Australian dollars, Brazilian reals, Canadian dollars, New Zealand dollars and U.S. dollars. 5 There is no overlap in the impact indicators. Impact is attributed to the most applicable category without double counting. 6 Social Bond Program – Cumulative Highlights Anticipated Impact Highlights7 through Between FY17 - FY23, IFC raised 88 6 Provide 31,130,466 microfinance loans $6.1 social bonds (incl. taps) in Reach 3,044,401 farmers8 billion 14 Enroll 238,407 students currencies Provide ICT services to 46,481,065 customers Reach 621.9 million patients 9 299 Provide 899,146 housing loans projects Provide 7,778,364 loans to women committed totaling $1O.3 Provide 69,881 loans to small and medium enterprises10 billion Supply power to 7.3 million people 11 6 These numbers specifically refer to bond issuances in the period FY17-FY23 and exclude $296 million issued in Inclusive Business bonds in FY15 and FY16 and $268 million issued in Banking on Women bonds between FY14-FY16. 7 The aggregate ex-ante figures include the targets from all commitments that were social bond eligible and do not represent incremental change or actual impact; some of these projects may have since closed. 8 Figure has been adjusted to account for the impact of a project that was deemed ineligible for social bond funding in FY21. 9 Figure includes both patients reached and vaccines sold. For reporting purposes, one vaccine equates to one patient. 10 Figure includes MSME loans to women and housing loans for women. 11 Figure includes connection and number of customers served (i.e. one connection is one customer). 7 IFC Climate Business Overview for FY23 Impact of IFC’s Climate Business in FY23 More than 11 million tons of carbon emissions avoided in developing countries – the equivalent of taking three large-scale coal-fired power plants off the grid. 7 dollars of commercial funding catalyzed for every dollar of blended finance deployed. Trained 285 stakeholders in emerging market financial institutions on labeled sustainable bonds, resulting in the issuance of over $10 billion in labeled bonds in more than 70 countries. Certification of 15 million square meters of green buildings achieved. Photo by Khaula Jamil/IFC 8 Since the signing of the Paris Agreement in 2016, IFC has almost Mobilizing Climate Finance for Emerging Markets quadrupled its own-account climate finance and multiplied the climate finance it mobilized from other sources by close to six times. In FY23, IFC Developing countries need between US$2 and US$2.8 trillion per year by 2030 to shift to low-carbon economies and protect their populations from the committed a record US$14.4 billion in climate finance, including US$7.6 impacts of climate change. However, only around US$630 billion a year in billion from its own-account and US$6.8 billion mobilized from other climate finance is flowing across the world – with only a fraction going to sources. These figures represent a record 46 percent of total long-term developing countries. With fiscal space very limited for most countries and investments for our own account, and almost double the amount from 60% of the poorest countries already at high risk of defaulting on their debts, the preceding year. IFC’s climate business is well-diversified across the private sector will need to supply about 80% of the required investment. multiple sectors, with 32 percent of investments in financial institutions IFC is mobilizing private capital to support climate-smart projects and and 30 percent dedicated to renewable energy. Other sectors in which boosting climate investments in challenging markets through a four-pronged IFC focuses its climate investment include the urban and transport approach: sector (16 percent of climate investment business), green buildings Building capacity among financial institutions, regulators, and stock 1.  (12 percent), industrial efficiency (7 percent), agribusiness (2 percent) exchanges, and setting global standards for products such as green and and adaptation (1 percent). IFC’s continuing growth in this area is blue bonds the culmination of practices intended to accelerate the transition to low-carbon and resilient growth in developing countries. IFC has Generating a long-term pipeline of investable projects (At the end of FY23 2.  consistently been able to identify and flag climate finance opportunities this pipeline included US$53 billion worth of investment opportunities at various stages of readiness across more than 100 countries.) to investment teams at the earliest stages of project design, enabling the organization to play a major role in the World Bank Group’s effort to Blending concessional finance to share investment risks and make the 3.  end poverty on a livable planet. transition more affordable where necessary to overcome first mover disadvantages Creating investment mechanisms through which institutional investors 4.  and other partners can crowd-in their finances and turn a profit as they achieve impact To continue achieving our goals, IFC aims to secure an additional US$4 billion from existing and prospective donor partners to support our growth ambitions in climate finance and mobilization. 9 Biodiversity Finance – The New Frontier of Green and Sustainable Finance Irina Likhachova Companies are beginning to see the benefits of investing in biodiversity. Biodiversity Finance Lead, IFC Climate Business Switching to more sustainable ways of doing business in three major sectors of land use, built environment and extractives can generate US$10.1 trillion in annual business opportunities by 2030. These opportunities stem from cost savings and additional revenues to companies and from developing new products and markets. For example, reforesting coffee plantations with native tree species provides shade for coffee crops, resulting in better quality coffee which can be sold for Biodiversity finance is about financing the transformation of our economies a higher price. It also improves the quality of soil, which translates to reduced from the current extractive models of production towards truly sustainable reliance on fertilizer. Financing transactions like these is good business for practices that allow nature to regenerate. This is what we need to do to halt and investors, and more importantly, essential for people and the planet. reverse biodiversity loss and to achieve global climate objectives. Finance is key to supporting the transition to nature-smart production Biodiversity – all plant and animal life on earth from microorganisms to iconic practices. There has been an increased interest in biodiversity finance from species – underpins healthy ecosystems that are essential for the well-being investors, financial institutions, and bond issuers globally, bolstered by the of people and the planet. These ecosystem services are crucial inputs into our adoption of the Kunming-Montreal Global Biodiversity Framework to halt and economies, and half of global GDP, or US$44 trillion, depend on them. At the reverse biodiversity loss by 2030. The green and sustainable debt market is same time, this economic activity is causing biodiversity loss at unprecedented particularly well suited to bring finance at scale to meet the challenge. levels through land and sea use change, resource overexploitation, pollution, Addressing the market’s need for guidance, IFC has developed the world’s and the spread of invasive species. To ensure continued economic growth, we first Biodiversity Finance Reference Guide, to provide an indicative list of must protect and repair biodiversity and ecosystem services. investment activities that help protect, maintain or enhance biodiversity and Restoring biodiverse ecosystems is also key to achieving climate goals. Nature promote sustainable management of natural resources. The guide focuses on loss is fundamentally interconnected with climate change – both crises investments that address the key drivers of biodiversity loss in economic activity, reinforce each other and present compound and systemic risks to the planet target conservation and restoration of ecosystems, and integrate nature-based and, by extension, to economies. Climate change is the second largest driver solutions into infrastructure projects to displace gray infrastructure. This guide of biodiversity loss, which diminishes ecosystems’ ability to provide climate has been incorporated into IFC’s own Green Bond Framework. mitigation and adaptation benefits. This in turn intensifies the impacts of climate change, resulting in a vicious cycle of escalating effects. The current drought in the Amazon region, which is driven by deforestation and by changing climate patterns, illustrates this interplay and the far-reaching economic impacts. 10 Photo by Julia Schmalz/IFC 11 An Overview of IFC’s Green and Social Bond Issuances in FY23 In fiscal year 2023, IFC made significant IFC issued the largest volume of green bonds since Furthermore, IFC raised 5.25 billion Swedish strides in both green and social bond markets, the 2010 launch of its Green Bond Program. In kronor (SEK), equivalent to US$497 million. establishing its presence in various currencies November 2022, IFC established its first green bond The Swedish currency was the second largest and markets. line in the Kangaroo market, issuing a 900 million currency of issuance for IFC’s Green Bond Australian dollar (AUD) green bond, equivalent Program in FY23. During the same period, IFC to US$570 million, which matures in May 2027. issued three U.S. dollar green bonds totaling through IFC’s Australian bond issuance was the largest US$315 million. Two were privately placed and Australian dollar green bond issued by a multilateral one issued to U.S. retail investors. We also printed In FY23, IFC raised 176 in development bank in 2022 and IFC’s largest Kangaroo transaction in over a decade. The transaction a record 2.5 billion in Norwegian kroner (NOK), equivalent to US$251 million and issued its first 24 issuances $13.7billion currencies attracted robust investor demand, garnering orderbooks of over 1 billion Australian dollars. The green bond in the Republic of Korea’s won (KRW), equivalent to US$27 million. Other green bonds bond was tapped several times thereafter to a issued included two private placements in South total outstanding volume of 1.35 billion Australian African rand (ZAR) totaling US$56 million. At dollars. Notably, the Australian dollar was the the end of FY23, IFC’s outstanding green bonds main currency of issuance for IFC’s Green Bond totaled US$6.4 billion. Program, raising the equivalent of US$873 million. FY23 Funding Program FY23 Green Bond Issuance Cumulative Green Bond Issuance by Currency by Currency Non-thematic Green KRW 1% IDR 1% Social ZAR 2% 9% ZAR 3% EUR 2% NZD 1% Other 3%* TRY 2% NOK 12% NOK 3% 15% BRL 3% CAD 5% USD 16% AUD 43% GBP 6% USD 52% 76% AUD 8% SEK 25% SEK 12% * Other includes PHP, CNH, MXN, INR, KRW, JPY, PEN, HKD, COP 12 IFC achieved a significant milestone in social 500 million Canadian dollar (CAD) social bond, bonds in FY23, issuing its second largest equivalent to US$366.9 million. IFC social bond volume since the launch of the Social Bond issuances equally succeeded in other parts of the Program in 2017. This achievement highlights world. In the Kangaroo market, IFC experienced the organization’s commitment to promoting strong investor demand for its Australian dollar sustainable development and addressing social social bond maturing in April 2035. Throughout challenges through innovative financing solutions. FY23, the bond was tapped eight times for a IFC established its first social bond line in the Kauri total of 500 million AUD, equivalent to US$339.4 market, issuing a 300 million New Zealand dollar million. This brought the total outstanding (NZD) social bond maturing in December 2029, amount of the bond to 1.7 billion AUD, equivalent equivalent to US$185 million. The bond was tapped to US$1.18 billion. IFC took part in the US$ floating for 275 million New Zealand dollars bringing the rate note market as well, raising US$100 million total outstanding volume to 575 million New through two social bond issuances, in addition Zealand dollars, equivalent to US$356 million. to a private placement for US$20 million. We also issued a private placement in Brazilian real (BRL) IFC’s largest social bond issuance of the year was totaling US$9.4 million. At the end of FY23, IFC’s in the Maple market, where it issued a five-year outstanding social bonds totaled US$3.75 billion. FY23 Social Bond Issuance Cumulative Social Bond Issuance Photo by Djenno Bacvic/IFC by Currency by Currency BRL 0.8% RUB 1% USD 10% MXN 2% Other 1% ** BRL 3% SEK 6% NZD 6% CAD 31% USD 42% AUD 28% CAD 13% NZD 30% AUD 27% ** Other includes CLP, ZAR, JPY, TRY, CNY, UYU 13 Featured Green Project Helping Ecuador Develop a Thriving Blue Finance Market Banco Internacional S.A. Water and Wastewater Management Ecuador, a coastal nation blessed with one of the world’s most bountiful IFC’s investment paved the way for the first private sector blue bond in fishing grounds, boasts vast expanses of water and the largest small-scale Ecuador, as well as the Latin America and the Caribbean (LAC) region. artisanal fishing fleet in the Southeast Pacific Region. Proceeds of the bond will help Banco Internacional provide long-term loans Photo by Jonathan Monck Mason/Unsplash and support projects that preserve clean water resources, and promote The country’s maritime industry holds the key to boosting the blue economy, sustainable aquaculture, fishing, and seafood value chain management. The supporting sustainable growth, reducing poverty, and creating jobs. bond contributes to climate change mitigation and adaptation efforts in Specifically, the fishing sector stands out, contributing approximately Ecuador and is part of the more than US$1 billion total in blue loans and bonds 1.5 percent to gross domestic product (GDP) and representing 13 percent that IFC has provided to private sector financial institutions and corporates of non-petroleum exports. The sector provides employment for more than since 2020. 108,000 people. IFC’s anchor investment has helped attract other market players and further However, the pursuit of a thriving blue economy is not without challenges, develops the country’s debt capital markets, setting a precedent for countries including the risk of ’blue washing’ and a lack of knowledge of blue financing. throughout the LAC region. IFC will also help Banco Internacional develop This is where the private sector can help the country address the challenges its blue finance framework and collaborate closely with Ecuador’s financial and harness available opportunities. In 2022, IFC invested US$40 million out regulatory authorities to establish a blue bond market. The project is an of a total of US$79 million in the first blue bond issued by Banco Internacional, excellent example of IFC’s efforts to develop the global blue economy finance the fifth largest commercial bank in Ecuador. market. 14 Featured Green Project Improving Water and Sanitation Infrastructure in Brazil Sanasa Water and Wastewater Management Brazil is a water-rich nation, presiding over 12 percent of the world’s surface freshwater. Despite this liquid abundance, approximately 14 percent of the population lack access to safe drinking water and over 50 percent do not have proper sanitation facilities. Public municipal or state-level water utilities and sanitation services, typically endowed with a poor infrastructure framework, have struggled in the face of underinvestment and sub-optimal management. Climate change and a rapidly growing urban population have both increased demand and exacerbated existing challenges. In 2023, IFC provided a 260 million Brazilian real (BRL) blue loan (equivalent to approximately US$52 million) to Sociedade de Abastecimento de Água e Saneamento S.A. (Sanasa), a Brazilian water utility company. Sanasa will use the funds to expand its water supply systems and sewage infrastructure in Campinas, a city of 1.3 million residents located near São Paulo. IFC’s investment is enabling Sanasa to build 30 water reservoirs to serve residents of Campinas. Sanasa will also make investments to improve its sewage services, with the goal of achieving 100 percent service coverage by 2026. In addition, Sanasa plans to strengthen its operational resilience, service quality, and efficiency. The loan is provided under IFC’s Utilities for Climate initiative, which combines advisory and investment services to promote climate-friendly solutions for water utilities. IFC will also support Sanasa with a diagnostic of all IT systems. The company needs support identifying how its existing IT systems can be Photo by Gianina Manrique Zapana/IFC integrated into a broader information management system and best practices across the whole company, building a managerial decision tool and improving Sanasa's operational efficiency. Sanasa aims to reduce its carbon footprint by decommissioning an inefficient wastewater treatment plant. The company’s strategy includes rerouting sewage to eco-friendly facilities and replacing water tanker trucks with a more efficient piped network. These initiatives are designed to not only enhance efficiency but also contribute to narrowing the demand-supply gap in the Piracicaba, Capivari and Jundiaí River (PCJ) basin, supporting Brazil’s priorities for climate change mitigation and adaptation. 15 Featured Social Project Supporting Women-Owned Businesses in Mongolia Khan Bank Gender Finance Women own two-thirds of all the small and medium enterprises in Mongolia. Yet financing in this mountainous country has yet to achieve gender parity. Female business owners lag their male counterparts when it comes to accessing both loans and favorable interest rates. Giving women access to better financing is essential not just for social reasons: it is key to achieving sustainable economic growth in the country. MSMEs, including those owned by women, account for 77 percent of Mongolia’s registered businesses. As a group, these businesses employ 72 percent of the workforce and contribute 17.8 percent of GDP. Mongolia has ambitious plans to combine growth with sustainability, but the country’s financial institutions need help if they are to fully meet the needs of its MSMEs. IFC recently supported Mongolia’s largest financial institution, Khan Bank, with a loan of up to US$70 million from its own account. The funds, which are being supplemented by a mobilization of US$60 million from other lenders, will help Khan Bank offer financing to more women-owned businesses. Khan Bank offers capacity-building to female entrepreneurs. IFC’s investment is supported by the Women Entrepreneurs Opportunity Facility (WEOF) and the Women Entrepreneurs Finance Initiative (We-Fi). Khan Bank currently provides banking services to about 80 percent of Mongolia’s population. Khan Bank’s reach will have a significant impact on the growth of MSMEs in the country, and the funds it lends will help Mongolian business owners support their employees and grow local economies. The Khan Bank investment also includes the private issuance of the country’s first green bond. The bond issuance will enable Khan Bank to grow its climate portfolio by funding projects that support renewable energy, energy efficiency, green buildings, green mobility, and climate-smart agriculture in Mongolia. These projects will in turn grow livelihoods for women and men in Photo by iStock a country which is tackling climate hazards and gender barriers at the same time. IFC has been a strong supporter of Mongolia's sustainable finance development in the past decade. IFC’s investment in Khan Bank demonstrates the potential for change when gender and climate priorities are addressed together. 16 Featured Social Project Enhancing Access to Financial Services in Africa M-KOPA Information and Communication Technology More than 40 percent of Africa’s population people without a credit history. In markets where currently lacks access to basic financial services individuals have limited pre-existing financial such as savings accounts, credit cards and lending identities and conventional collateral, M-KOPA’s facilities. Smartphones and other internet-enabled innovative and inclusive flexible credit model devices can play an important role in expanding allows individuals to pay a small deposit and get financial inclusion and narrowing the digital instant access to everyday essentials, including divide, but such devices remain unaffordable for smartphones, electric motorcycles, and other many people. devices. Later, customers may choose to access digital financial services such as loans and health M-KOPA, a leading fintech platform, is tackling insurance. Customers can then pay off their loans these intertwined challenges by enabling in micro-installments. underbanked customers access to inclusive, flexible, and progressive customer-centric The funding is IFC's first sustainability-linked loan credit loans to purchase productive assets. The to a pay-as-you-go provider in sub-Saharan Africa. fintech platform aims to make credit more easily The loan has pricing incentives to encourage accessible to everyone by combining the power of M-KOPA to achieve environmental, social, and digital micropayments with GSM (Global System governance targets, which include commitments for Mobiles) connectivity. on the number of smartphone sales to women, the value of credit unlocked to women, and In 2023, IFC provided a US$50 million equivalent greenhouse gas emission reductions achieved multicurrency loan to M-KOPA Kenya Ltd. and through its solar products portfolio. a US$15 million equivalent loan in Ugandan shillings to M-KOPA Uganda Ltd. The financing IFC’s financing allows M-KOPA to scale its will enable M-KOPA to expand its financial services impact and deepen financial inclusion, providing Photo by Mwarv/IFC to underbanked consumers in Eastern Africa by connected, life-enhancing assets to lower-income providing a new level of financial access for consumers across Africa. 17 Photo by Bradford Roberts/IFC 18 Green Bond Eligible Project Commitments by Region † (US$ millions) As of June 30, 2023, IFC green bond proceeds supported 285 green bond eligible projects. The total committed amount for these projects is US$12.1 billion, of which US$10.2 billion has been disbursed. FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Total Commitments 936 1,133 961 1,554 2,205 885 696 1,040 1,035 1,694 12,139 Disbursements 242 957 754 1,357 1,913 1,135 642 665 1,326 1,247 10,237 South Asia FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Total Commitments 62 239 200 299 297 122 84 14 60 51 1,428 Disbursements 11 125 154 194 200 248 75 10 85 8 1,111 Latin America and the Caribbean FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Total Commitments 618 422 90 534 406 252 330 101 210 334 3,297 Disbursements 156 551 210 449 357 208 171 146 301 93 2,642 East Asia and the Pacific FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Total Commitments - 2,286 - 229 204 340 325 38 366 352 431 Disbursements - - 18 179 427 306 47 198 323 514 2,013 Europe and Central Asia FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Total Commitments 178 370 284 320 834 121 119 109 197 689 3,220 Disbursements 66 228 265 312 833 183 255 49 220 584 2,995 Sub-Saharan Africa FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Total Commitments 23 43 39 36 63 20 17 350 759 120 47 Disbursements - 19 21 22 14 42 32 183 199 27 560 Middle East and North Africa FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Total Commitments 55 59 119 137 265 45 108 100 69 142 1,099 Disbursements 9 34 86 184 75 148 62 79 167 20 864 Multi-Region FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Total Commitments - - - 24 - - - - 27 - 51 † S  ome numbers in the above tables have been adjusted to reflect updated calculations. Disbursements - - - 17 7 - - - 30 - 54 Numbers may not add up to the total due to rounding. 19 Green Bond Eligible Project Commitments by Sector † (US$ millions) FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 936 1,133 961 1,554 2,205 885 696 1,040 1,035 1,694 756 808 306 845 1,129 556 408 487 419 1,014 81% 71% 32% 54% 51% 63% 59% 47% 40% 60% 521 54% 92/13% 329 117/17% 342 32% 264 33% 30% 79/11% 94/10% 287 275 65/7% 86/9% 134/14% 579 211 28% 24% 37% 20% 50/4% 366 22% 784 36% 312 130/8% 18% 2/0.14% Renewable Energy Energy Efficiency 281 Other Mitigation 13% Adaptation 11/0.5%  ome numbers in the above graph have been adjusted to reflect updated calculations. † S Numbers may not add up to the total due to rounding. 20 Green Bond Eligible Project Commitments for FY23 The Impact Assessment table lists expected climate results from projects eligible to be funded, in whole or in part, with IFC green bond proceeds. The table includes only the projects committed in FY23. The projects are organized by sector and categorized by project type as Adaptation, Energy Efficiency, Renewable Energy or Other Mitigation. The category of ‘Other Mitigation’ is used to categorize climate projects which do not meet the criteria of the first three categories. In this context, ‘Adaptation’ means reducing the vulnerability of human or natural systems to climate change and climate variability-related risks by maintaining or increasing adaptive capacity and resilience. Projects committed in FY23 align with the following SDGs: Notes Impact indicators are tracked on a project-level basis and are not pro-rated for the portion of IFC’s contribution. 1.  The impact of direct investments is based on ex-ante estimates, developed before project implementation, of 2.  expected annual results for a representative year once a project is complete and operating at normal capacity. The impact of indirect investments, such as through financial intermediaries, are conservatively estimated based 3.  on the likely allocation of use of proceeds among the eligible project types. To avoid double counting, IFC does not provide impact estimates on projects committed in prior years that 4.  received additional financing in FY23. 5. Projects with no impact estimates are due to insufficient information on relevant indicators. The alignment of IFC's green projects with the project categories outlined in the Green Bond Principles is 6.  determined through IFC's internal assessment of the Green Bond Principles' categories. 21 Green Bond Type Project Project Country Project Climate Annual Annual RE Capacity Expected Green Bond Sustainable Climate Sector ID Short Name or Description Loan Energy Energy Constructed/ Annual Principles Development Region Committed Produced Savings Rehabilitated Reduction in Categories Goals GHG Emission US$ millions MWh kWh MW tCO2 eq/year Climate Adaptation 46696 Blueberry III South IFC's loan will support United Exports 2.31 - - - - Climate Adaptation Africa Limited, a company operating in the Change blueberry value-chain in Southern Africa, Adaptation in mitigating the impact of frost. This will be achieved through the adoption of next-generation OZblu® blueberry varieties that are not affected by frost and expanding blueberry orchards to frost-free areas, including the Western Cape region. Green Energy 47457 DCM UCB Romania IFC’s subscription in the UniCredit Bank 47.48 - - - 1,493 Green Banking Efficiency Romania S.A. senior bonds will be used to finance Buildings the bank’s green housing portfolio in Romania. Green Energy 46788 YKL Türkiye IFC’s loan will support the development 80 - - - 10,022 • Renewable Banking Efficiency Climate of Türkiye’s Climate Finance market by Energy providing an innovative new product • Energy to Yapi Kredi Bank, the largest leasing Efficiency company which has an extensive reach • Sustainable into the small and medium enterprises Water and (SME) segment with investments in Wastewater renewable energy, energy efficiency and Management blue finance. Green Renewable 47448 DCM BAY Thailand IFC’s subscription in the Bank of 400 - - - 221,932 • Renewable Banking Energy GreenBlue Ayudhya Public Company Limited's (BAY) Energy green and blue bond will support the • Sustainable development of the Bank’s blue assets Water and related to ocean-friendly projects as well Wastewater as protecting clean water resources, Management with the remaining subscription amount • Clean dedicated to supporting the growth of Transportation the Bank’s eligible green assets including electric vehicles (EVs) and renewable energy. BAY is the fifth largest Domestic Systemically Important Bank (D-SIB) in Thailand. 22 Green Bond Type Project Project Country Project Climate Annual Annual RE Capacity Expected Green Bond Sustainable Climate Sector ID Short Name or Description Loan Energy Energy Constructed/ Annual Principles Development Region Committed Produced Savings Rehabilitated Reduction in Categories Goals GHG Emission US$ millions MWh kWh MW tCO2 eq/year Green Energy 45472 Visum REIT Colombia IFC's loan will support Visum's 2022-2024 22 - - - - Green Buildings Efficiency investment plan in green commercial Buildings properties. Visum is the fifth largest Real Estate Investment Trust (REIT) in Colombia, and its development plans include a world-class 80,000 square meters build-to-suit warehouse for Falabella, a leading regional retailer. The building will house Falabella’s e-commerce operations under the Green Pathways for Real Estate Institutional Portfolios initiative. (GRIP), an effort designed to support major real estate asset owners and tenants to define and implement decarbonization and net-zero strategies. The loan and collaboration under GRIP seek to help Visum move closer to its goal of becoming the first green REIT in Colombia. Green Renewable 4687312 Kasada Kenya IFC’s loan will finance the acquisition 2.08 - - - 1,488 Green Buildings Energy Umba and subsequent refurbishment and Buildings repositioning of the Crowne Plaza hotel in Nairobi, Kenya, which will be EDGE certified. Green Energy 47722 CTP UCL Eastern IFC’s loan will finance the development 129.41 - - - 24 Green Buildings Efficiency Europe of energy-efficient, green-certified, Buildings industrial and logistics parks in Bulgaria and Poland. Green Energy 46557 Avenue II Kenya IFC’s loan will enable Avenue Group 12.7 - - - 137 Green Buildings Efficiency Limited, a healthcare provider in Kenya, Buildings to develop new healthcare facilities and upgrade existing hospitals and clinics to expand its primary care footprint, which will be EDGE certified. Green Energy 45729 FCSRE South IFC’s loan will finance Dembesh Hotel’s 3.71 - 911,000 - 552 Green Buildings Efficiency Dembesh Sudan project in Juba, South Sudan, involving Buildings a 30-room extension and refurbishment of the existing rooms, for which a green building certification will be obtained. Disclosure link is to the parent project which covers this project. 12  23 Green Bond Type Project Project Country Project Climate Annual Annual RE Capacity Expected Green Bond Sustainable Climate Sector ID Short Name or Description Loan Energy Energy Constructed/ Annual Principles Development Region Committed Produced Savings Rehabilitated Reduction in Categories Goals GHG Emission US$ millions MWh kWh MW tCO2 eq/year Solar Energy/ Renewable 46362 FP Energy India IFC's loan will finance Fourth Partner 51.45 220,560 - 170 181,304 Renewable Wind Energy Energy PF Energy Private Limited's 170 MWp Energy portfolio of distributed generation assets, comprising (i) 95 MWp of onsite solar (RTS) plants and (ii) 75 MWp offsite, ground mounted solar power plants under the Open Access (OA) model, supplying power to commercial and industrial clients across India through long term power purchase agreements (PPAs). The company is one of the largest renewable energy developers in India. Solar Energy Renewable 41727 Abydos Egypt IFC’s loan will support the development, 88 1,434,657 - 500 714,459 Renewable Energy Solar IPP design, construction, operation, and Energy maintenance of a 500 MW Abydos Solar PV independent power producer (IPP) project. The project is expected to enhance power sector resilience by diversifying the energy mix through the expansion of renewable energy generation, via demonstration and replication, in Egypt. Solar Energy Renewable 46536 Sermsang Thailand IFC’s loan will finance the acquisition, 31.37 86,180 - 52 74,000 Renewable Energy Solar development and construction of Energy renewable energy projects (solar farms, solar rooftops, wind and biomass) across Asia. Solar Energy Renewable 46952 Engie Chile IFC’s green loan with sustainability linked 200 - - - 861,518 Renewable Energy Chile UCL financing features will finance part of Energy ENGIE Energía Chile’s (EECL) – one of the most important electricity generators in Chile – decarbonization plan away from coal use through the financing and leveraging of new and existing renewable energy assets consisting of solar PV and battery energy storage systems. Solar Energy Renewable 45644 Karavasta Albania IFC’s loan will finance the development, 31.71 265,000 - 140 68,032 Renewable Energy Solar construction, operation and maintenance Energy of a 124MWac/140MWp solar photovoltaic (PV) plant located in the County of Fier, Albania. The PV plant will be connected to the national grid through a 19.2 km 220 kV transmission line. 24 Green Bond Type Project Project Country Project Climate Annual Annual RE Capacity Expected Green Bond Sustainable Climate Sector ID Short Name or Description Loan Energy Energy Constructed/ Annual Principles Development Region Committed Produced Savings Rehabilitated Reduction in Categories Goals GHG Emission US$ millions MWh kWh MW tCO2 eq/year Solar Energy Energy 46290 Africa Go Africa IFC’s loan will allow AGG – a dedicated 30 - - - 23,968 • Renewable Efficiency Green Region pan-African greenhouse gas emission Energy reduction debt fund – to broaden its • Energy financing for climate-friendly projects in Efficiency Africa, including purchasing high-efficiency • Green appliances and industrial equipment, Buildings retrofitting existing buildings and new green buildings, and installing rooftop solar and battery storage for residential, commercial, and industrial consumers. Water and Other 46190 DCM BI Blue Ecuador IFC’s subscription of US$40 million to a 40 - - - - Sustainable Wastewater Mitigation blue bond issued by Banco Internacional Water and Management – the fifth largest commercial bank in Wastewater Ecuador with a focus on small and medium Management enterprises (SMEs) and commercial clients – whose proceeds were on-lent to projects that support a sustainable blue economy and the preservation of clean water resources in Ecuador. Water and Other 47383 SANASA Brazil IFC’s blue loan will assist Sanasa, a water 44.83 - - - 18,816 Sustainable Wastewater Mitigation Loan and sanitation company in Brazil, in Water and Management expanding its water supply systems and Wastewater sewage treatment capacity in Campinas. Management This will help the company reach its objective of complete service coverage by 2026 as well as improve operational resilience, enhance service quality, and increase efficiency. Transport Renewable 46561 Otosan EV Türkiye IFC’s loan will partially fund Otosan’s – 159.53 - - - 32,607 Clean Energy a leading automotive manufacturer in Transportation Türkiye – multi-year, $1 billion investment program to expand the production of its new Ford Transit Custom commercial vehicle, a one-ton, medium-sized electric vehicle manufactured at the Yeniköy plant in Türkiye. Transport Other 46728 SK IET Poland IFC’s loan will support the on-going 200 - - - - Clean Mitigation Poland construction and expansion of SK Transportation Poland’s production facility of lithium- ion battery separators in Dabrowa Górnicza, Poland. SK Poland is the Polish subsidiary of SK i.e. technology Co. Ltd, a manufacturer of lithium-ion battery separators (LiBS). LiBS are a key 25 Green Bond Type Project Project Country Project Climate Annual Annual RE Capacity Expected Green Bond Sustainable Climate Sector ID Short Name or Description Loan Energy Energy Constructed/ Annual Principles Development Region Committed Produced Savings Rehabilitated Reduction in Categories Goals GHG Emission US$ millions MWh kWh MW tCO2 eq/year component of batteries used in electric vehicles and the project will help SK Poland meet the fast-growing demand for EV batteries in Europe. Transport Energy 47580 Marport Türkiye IFC's loan will support Marport's – the 40.8 - - - 18,338 Clean Efficiency third largest container terminal in Transportation Türkiye - refurbishment and extension of existing berths and procurement of new equipment; including berth deepening and basin dredging works, which will result in transport cost efficiencies and emission savings due to the gradual transition towards larger vessels calling at the terminal following the availability of deeper drafts at berths, and procurement of electric ship-to-ship transfer cranes. Waste Other 45669 Orizon Brazil IFC’s loan of BRL 130 million to Orizon, 26.77 - - - 54,849 Pollution Management Mitigation Waste a leading waste management company Prevention in Brazil, is the first sustainability-linked and Control loan for the waste management sector in emerging markets. This investment will support the construction of Latin America’s largest mechanized material recovery facility (MRF) which operates on a dirty mixed waste stream and has the capacity to process approximately 2,000 tons of waste a day thereby reducing the amount of waste going to landfills by increasing recycling rates. The loan will also help in the expansion of two leachate treatment plants and provide capital investments for three of Orizon’s sanitary landfills. Wind Energy Renewable 45837 Amunet Egypt IFC’s loan will support the development, 50.02 2,363,000 - 504.4 1,062,383 Renewable Energy Wind IPP design, construction, operation and Energy maintenance of a 504.4 MW Amunet Wind independent power producer (IPP) project, located in the Gulf of Suez region of Egypt. The project is expected to enhance power sector resilience by diversifying the energy mix through the expansion of renewable energy generation, via demonstration and replication. 26 Photo by Mirela Momanu/IFC 27 Social Bond Eligible Project Commitments by Region † (US$ millions) As of June 30, 2023, IFC has committed 299 projects eligible for support from social bond proceeds. The total committed amount for these projects is US$10.3 billion of which US$9.1 billion has been disbursed. Total FY17 FY18 FY19 FY20 FY21 FY22 FY23 Commitments 620 717 823 2,156 1,501 1,827 2,652 10,296 Disbursements 364 614 872 966 1,856 1,275 3,194 9,141 South Asia FY17 FY18 FY19 FY20 FY21 FY22 FY23 Total Commitments 165 151 320 317 345 405 601 2,304 Disbursements 100 122 398 146 227 307 925 2,225 Latin America and the Caribbean FY17 FY18 FY19 FY20 FY21 FY22 FY23 Total Commitments 42 108 205 319 395 675 872 2,616 Disbursements 8 86 237 227 285 370 1,268 2,481 East Asia and the Pacific FY17 FY18 FY19 FY20 FY21 FY22 FY23 Total Commitments 137 71 141 586 321 403 465 2,124 Disbursements 33 168 53 279 511 327 262 1,633 Europe and Central Asia FY17 FY18 FY19 FY20 FY21 FY22 FY23 Total Commitments 109 177 20 166 232 239 217 1,160 Disbursements 107 154 41 76 224 68 305 975 Sub-Saharan Africa FY17 FY18 FY19 FY20 FY21 FY22 FY23 Total Commitments 155 104 130 532 181 92 492 1,686 Disbursements 109 79 33 97 502 178 416 1,414 Middle East and North Africa FY17 FY18 FY19 FY20 FY21 FY22 FY23 Total Commitments 12 106 7 116 27 13 5 286 Disbursements 7 5 108 21 107 25 18 291 Multi-Region FY17 FY18 FY19 FY20 FY21 FY22 FY23 Total Commitments - - - 120 - - - 120 † S  ome numbers in the above tables have been adjusted to reflect updated calculations. Disbursements - - 2 120 - - - 122 Numbers may not add up to the total due to rounding. 28 Social Bond Eligible Project Commitments by Sector 13 † (US$ millions) Information and Agribusiness Communication Technology Infrastructure FY17 FY18 FY19 FY20 FY21 FY22 FY23 Total FY17 FY18 FY19 FY20 FY21 FY22 FY23 Total FY17 FY18 FY19 FY20 FY21 FY22 FY23 Total Com* 119 56 76 273 86 57 58 725 Com* 137 - 15 - 3 - 128 283 Com* 20 - - 28 10 104 - 162 Dis** 104 41 31 167 128 72 21 563 Dis** - 31 105 9 - 1 67 213 Dis** 13 - - 20 8 155 104 300 Education Gender Finance Other Finance FY17 FY18 FY19 FY20 FY21 FY22 FY23 Total FY17 FY18 FY19 FY20 FY21 FY22 FY23 Total FY17 FY18 FY19 FY20 FY21 FY22 FY23 Total Com* - 106 5 - 40 - 51 202 Com* - 241 253 419 130 347 940 2,330 Com* 3 4 - - - 26 - 33 Dis** - 1 1 - 57 - 20 79 Dis** 40 189 215 326 212 130 745 1,857 Dis** - 1 1 1 2 - - 5 Food & Beverages Housing Finance COVID-19 Response Finance FY17 FY18 FY19 FY20 FY21 FY22 FY23 Total FY17 FY18 FY19 FY20 FY21 FY22 FY23 Total FY17 FY18 FY19 FY20 FY21 FY22 FY23 Total Com* 29 36 18 56 31 10 - 180 Com* - 20 - 248 275 140 845 1,528 Com* - - - 838 254 434 1,779 253 Dis** 3 15 29 20 65 4 5 141 Dis** - 248 - 20 - 286 940 1,494 Dis** - - - 881 50 430 342 1,703 Health Microfinance FY17 FY18 FY19 FY20 FY21 FY22 FY23 Total FY17 FY18 FY19 FY20 FY21 FY22 FY23 Total Com* - 68 37 9 159 627 220 1,120 Com* 449 150 424 179 333 262 157 1,954 Dis** - - 85 - 160 250 368 863 Dis** 205 316 405 125 343 86 443 1,923 Projects are categorized under the most applicable sector without any overlap or double counting. 13   ome numbers in the above tables have been adjusted to reflect updated calculations. † S *  Commitments Numbers may not add up to the total due to rounding. ** Disbursements 29 Social Bond Eligible Project Commitments for FY23 The Impact Assessment table lists expected outcomes from projects eligible for funding from IFC social bond proceeds in FY23, organized by sector. Eligible categories include those stated within the Social Bond Principles. Projects committed in FY23 align with the following SDGs: Note Reporting is based on ex-ante estimates at the time of project appraisal. Because the Impact Assessment 1.  table includes the estimated results of projects, there is no guarantee these results will materialize. Thus, the reporting is not intended to provide actual results achieved in a specific year or reporting period. 2. Impact indicators are not pro-rated for the portion of IFC’s contribution. While some social bond projects may span multiple Social Bond Principles’ project categories, for clarity, 3.  we have chosen to indicate only the primary category determined through IFC's internal assessment of the Social Bond Principles’ categories. The table below includes the acronyms MSME (micro, small and medium enterprise); MSE (micro and 4.  small enterprise); SME (small and medium enterprise); WMSME (women-led or women-owned micro, small and medium enterprise); and WSME (women-led or women-owned small and medium enterprise). 30 Projects eligible for funding in FY23 are selected from the following themes: Impact Highlights Inclusion & Gender Finance Projects Overall beneficiaries reached: 130,691,211 Inclusion projects focus on increasing access to goods, services, livelihoods, and markets for low-income and underserved populations. Gender finance Indicators Baseline Target projects address gaps in access to finance for women-owned enterprises. Outstanding microfinance loans (#) 5,974,168 8,237,149 Global Health Platform Projects Farmers reached (#) 85,636 218,770 Projects that are a part of IFC’s Global Health Platform provide financing Students enrolled (#) 90,175 100,966 solutions to manufacturers, suppliers, and service providers for capacity expansion and working capital requirements. These projects increase the Customers reached (#) 673,963 3,366,315 supply of affordable health care products and services in developing countries Outstanding loans to women (#) 121,259 641, 635 and are critical components of IFC's pandemic response. Outstanding SME loans (#) 20,729 30,151 COVID-19 Response Projects Vaccines sold (#) - 118,000,000 COVID-19 Response projects are part of IFC’s COVID-19 Response Financing Outstanding housing loans (#) 24,369 96,495 Facilities. These projects include support for banks as they help business clients shore up working capital, ensuring that local firms can pay their bills and meet payroll obligations. The Base of the Pyramid (BOP) facility helps financial services providers deliver funding to small businesses, informal enterprises, and low-income households. Together, these projects support economic growth, job creation, and a resilient pandemic recovery in emerging markets. 31 Sector Project Institution Country Project Eligible Loan Social Bond Sustainable ID Name or Region Description Commitment Principles Development (US$ millions) Categories Goals Microfinance 4402814 Baobab Madagascar Baobab Group is a financial services group serving 5  ccess to essential A nearly 500,000 micro entrepreneurs and small services businesses, helping to improve access to funding in areas underserved by traditional banks. Baobab is one of the first microfinance networks to implement the 2006 Microfinance Initiative for Sub-Saharan Africa. 47065 Baobab Senegal The selected subsidiaries represent leading players in 14 Access to essential their respective markets and offer an opportunity for services IFC to reach multiple financial inclusion operators in an efficient manner. The project is a multi-local-currency facility which will help the Baobab Group scale up lending to micro 47100 Baobab Democratic 3 Access to essential and small enterprises in sub-Saharan Africa. The Republic of services project will also benefit six Baobab affiliates in Burkina Congo Faso, Democratic Republic of Congo, Côte d’Ivoire, Madagascar, Mali and Senegal. 47129 Baobab Burkina 3.8 Access to essential Faso services 47130 Baobab Mali 1.7 Access to essential services 48146 Baobab Côte d’Ivoire 20 Access to essential services Microfinance 47929 Agency for Kosovo AFK is one of largest microfinance institutions in 1.64 Access to essential Finance in Kosovo which provides financial services to small and services Kosovo (AFK) micro enterprises. The project will support individual entrepreneurs and micro-businesses in Kosovo, including smallholder farmers, microenterprises, women-owned small businesses, and entrepreneurs operating in the agriculture sector and underserved rural areas. 14 Disclosure links for Baobab projects are to the umbrella project which covers all projects. 32 Sector Project Institution Country Project Eligible Loan Social Bond Sustainable ID Name or Region Description Commitment Principles Development (US$ millions) Categories Goals Microfinance 47937 KEP Trust Kosovo KEP Trust is a leading microfinance institution in 2.45 Access to essential Kosovo which provides financial services to small and services micro enterprises. The project will support individual entrepreneurs and micro-businesses in Kosovo, including smallholder farmers, microenterprises, women-owned small businesses, and entrepreneurs operating in the agriculture sector and underserved rural areas. Microfinance 47938 Kreditimi Rural Kosovo KRK is Kosovo’s third largest microfinance institution 2.19 Access to essential I Kosovo’s LLC that offers financial services to microenterprises, with a services (KRK) dedicated focus to agri-borrowers. The project will support individual entrepreneurs and micro-businesses in Kosovo, including smallholder farmers, microenterprises, women- owned small businesses, and entrepreneurs operating in the agriculture sector and underserved rural areas. Microfinance 46875 Bayport Zambia Bayport is a leading nonbank financial institution in 20 Access to essential Financial Zambia. The project will increase access to finance and services Services scale up lending operations to underserved individuals, Zambia Limited including those in rural areas and women. The project will enhance livelihoods and improve income generating capacity in Zambia. Microfinance 46295 Vivriti Fixed India The fund, managed by Vivriti Asset Management Private 10 Access to essential Income Fund Limited (VAM) which serves financial institutions, services – Series 3 IFSC corporations, small enterprises, and individuals who lack LLP access to financial services, will extend financing primarily for MSMEs and WMSMEs. Microfinance 45752 Vitas Palestine West Bank Vitas Palestine is a microfinance company operating 5 Access to essential and Gaza in West Bank & Gaza. The company serves MSMEs and services individual borrowers by providing several lending products including business loans, housing loans and consumption loans. The project will provide financing to SMEs and WSMEs. Microfinance 46697 Microfinance Kyrgyz Elet Capital is a microfinance company in the Kyrgyz 2.5 Access to essential Company Elet- Republic Republic. The project will increase access to finance for services Capital CJSC microenterprises and underserved individuals with a focus on women-led enterprises and micro-housing, particularly in rural areas. 33 Sector Project Institution Country Project Eligible Loan Social Bond Sustainable ID Name or Region Description Commitment Principles Development (US$ millions) Categories Goals Microfinance 47054 Bank Azerbaijan Respublika Bank is one of the leading private and 20  ccess to essential A Respublika JSC independent banks in Azerbaijan providing services services primarily to SMEs, local entrepreneurs and individuals. The project will support lending to MSMEs, including on- lending to WMSMEs. Microfinance 47224 Microfinance Kazakhstan KMF is the largest microfinance institution in Kazakhstan. 20 Access to essential Organization The project will provide much needed local currency services KMF LLC funding to MSEs in rural areas and women entrepreneurs in a challenging economic environment caused by the COVID-19 crisis and further exacerbated by the Russian invasion of Ukraine. The project will further support the implementation of a digital transformation of KMF’s products and operations. Microfinance 47229 Kyrgyz Kyrgyz KICB is one of the leading providers of financial services 15 Access to essential Investment Republic to private sector in the Kyrgyz Republic. The project will services and Credit increase access to finance for underserved individuals and Bank CJSC micro-enterprises including via microfinance institutions, (KICB) with a particular focus on sustaining affordable housing finance for low-income individuals and financing to WMEs during a challenging economic environment caused by the COVID-19 crisis and further exacerbated by the Russian invasion of Ukraine. Microfinance 47411 PT Bank BTPN Indonesia BTPN is a publicly listed bank in Indonesia. The project 250 Access to essential Tbk will support the bank’s lending programs for MSMEs and services WMSMEs. Microfinance 47563 Chongho China Chongho Bridge is an established rural financial 72.71 Access to essential Bridge Group service provider in China, providing micro credit and services Limited comprehensive rural services through its subsidiaries. It is the largest rural focused microfinance provider in China. The project entails an investment in local currency in the social bond to be issued by Chongho Bridge whose proceeds will be used to on-lend to women or WMSEs in frontier provinces and Inner Mongolia in China. IFC will play an anchor investor role in the social bond placement to help catalyze mobilization from other investors. 34 Sector Project Institution Country Project Eligible Loan Social Bond Sustainable ID Name or Region Description Commitment Principles Development (US$ millions) Categories Goals Microfinance 4083915 ACEP Burkina Burkina Alliance de Crédit et d'Epargne pour la Production (ACEP) is a 2 Access to essential SA Faso regional microfinance group founded by ACEP International services and I&P Entrepreneurs. The project will support the microfinance institution as it expands its lending operations in the rural finance and MSME space in Burkina Faso. The project is part of Phase I of IFC’s Rural Finance Facility, a platform program being developed by IFC to support financing of MSMEs in rural areas, including agri-MSMEs, smallholder farmers and rural value chain operators in Africa and the Middle East. Phase I will identify and support partner financial institutions with an interest in rural finance. Phase II will focus on supporting farmer cooperatives across multiple value chains as they roll out digitally enabled finance through partner financial institutions. Microfinance 45177 Denizbank Türkiye DenizBank is the fifth largest private bank in Türkiye. 125 Access to essential Anonim Sirketi The project will support the Bank's lending program to services qualifying agribusiness farmers and MSMEs whose main business is agricultural production. Microfinance 4707716 Caisses Madagascar UNICECAM is one of Madagascar’s leading rural 5 Access to essential d’epargne et de microfinance institutions. The project will enable the services Credit Agricole provision of funding to MSEs to support economic activity Mutuels and resilience in the aftermath of the COVID-19 crisis. (UNICECAM) Microfinance 4707816 Societe Madagascar SGM is a subsidiary of the Société Générale Group and  ccess to essential 20 A Generale is engaged in offering sustainable and responsible services Madagasikara banking services to individuals, MSMEs, corporates, and (SGM) institutions (financial institutions, public entities, and NGOs) in Madagascar. The project will enable the provision of funding to MSMEs to support economic activity and resilience in the aftermath of the COVID-19 crisis. Microfinance 4709416 Premier Credit Uganda Platcorp Holdings is a microfinance investment 2 Access to essential Uganda management company registered in Mauritius. The group services has nine operating microfinance companies in Kenya, Lesotho, South Africa, Tanzania, Uganda, and Zambia. Its mission is to provide affordable microfinance services to MSMEs and to employ individuals across Africa. 4709516 Platinum Uganda The project will support the company’s subsidiaries namely 3 Access to essential Credit Uganda Platinum Credit Uganda and Premier Credit Uganda by services Banco providing liquidity to microfinance institutions to support Industrial SA the growth of their MSME portfolios, thereby improving access to finance for MSMEs. 15 As this is a repeat client, indicators for this project have been referenced in previous impact reports. 35 16 Disclosure link is to the parent project which also covers this project. Sector Project Institution Country Project Eligible Loan Social Bond Sustainable ID Name or Region Description Commitment Principles Development (US$ millions) Categories Goals Gender 46242 Banco Guatemala Banco Industrial is the leading financial institution in 20 S  ocioeconomic Finance Industrial SA Guatemala. The project will deliver working capital support advancement and targeted to SMEs and WSMEs impacted by the COVID-19 empowerment pandemic. Gender 47350 Itaú Unibanco Brazil Itaú is the largest private bank in Brazil. The project will 200 Socioeconomic Finance SA support the bank’s lending program to WMSMEs with a advancement and 10% carveout to projects located in the underserved regions empowerment of the North and Northeast of Brazil. Gender 47226 Banque Mauritania BMI is the third-largest bank in Mauritania by total loans 2.5 Socioeconomic Finance Mauritanienne and has grown to become the fourth-largest bank by total advancement and de assets and total deposits. The project will support MSMEs empowerment l’investissment and WMSMEs. (BMI) Gender 44183 La Régionale Cameroon La Régionale is a microfinance institution in Cameroon 1.23 Socioeconomic Finance SA that obtained a banking license in 2022. The project will advancement and provide local currency funding to support La Régionale empowerment in increasing its lending capacity to the retail segment, including MSMEs. Gender 46368 Credit Cameroon CCA was the largest microfinance institution in Cameroon, 2.09 Socioeconomic Finance Communautaire before becoming a bank in 2018 and rebranding itself as advancement and d’Afrique-Bank CCA-Bank. The project will support the growth of the loan empowerment S.A. portfolio of MSMEs and WMSMEs. Gender 45726 Demir Kyrgyz Kyrgyz DKIB is the first major international bank in the Kyrgyz 2.5 Socioeconomic Finance International Republic Republic. The project will increase access to finance for advancement and Bank CJSC SMEs with a particular focus on financing to WSMEs. empowerment (DKIB) Gender 46698 Banca Moldova MAIB is Moldova’s leading financial institution. The project 10.96 Socioeconomic Finance Comerciala will increase access to finance for MSMEs and WMSMEs. advancement and Moldova- empowerment Agroindbank SA (MAIB) Gender 46702 Patria Bank SA Romania Patria is a commercial bank in Romania. The project will 10.65 Socioeconomic Finance increase access to finance for micro, small and medium advancement and enterprises (MSMEs) and women-owned SMEs (WSMEs). empowerment 36 Sector Project Institution Country Project Eligible Loan Social Bond Sustainable ID Name or Region Description Commitment Principles Development (US$ millions) Categories Goals Gender 46970 Khan Bank LLC Mongolia Khan Bank is the largest commercial bank in Mongolia. The 35 Socioeconomic Finance project will support the recovery and growth of MSMEs and advancement and WMSMEs. empowerment Gender 46984 Saigon - Hanoi Vietnam SHB is a commercial bank operating nationwide in 15 Socioeconomic Finance Commercial Vietnam. The project will support the growth of SHB’s SME advancement and Joint Stock and WSME loan portfolio. empowerment Bank (SHB) Gender 47422 Thai Credit Thailand TCRB is a private sector bank in Thailand, dedicated 35 Socioeconomic Finance Bank Public to serving MSMEs and retail clients. The project is an advancement and Company investment in the first social loan to be raised by the bank empowerment Limited (TCRB) whose proceeds will be used to support SMEs and micro- SMEs including WSMEs and WMSMEs. Gender 47455 XacBank LLC Mongolia XacBank is the fifth largest bank in Mongolia. The project 19.88 Socioeconomic Finance aims to support XacBank to grow its lending portfolio in advancement and two key priority sectors - climate and micro, small and empowerment medium enterprises finance, including women-owned MSMEs. Gender 48139 The Standard South SBSA is a leading bank in South Africa that is a wholly 45.72 Socioeconomic Finance Bank of South Africa owned subsidiary of Standard Bank Group Limited (SBG), advancement and Africa Ltd Africa’s largest financial services group by assets. The empowerment (SBSA) project will support the bank’s affordable housing finance program in South Africa. Gender 46941 Banco de la Ecuador Produbanco is the fourth largest commercial bank in 32.5 Socioeconomic Finance Produccion S.A. Ecuador. The project will improve access to finance for advancement and SMEs and WSMEs. empowerment Gender 4744317 FirstRand Bank South FirstRand Bank Limited is one of the largest financial 37.5 Socioeconomic Finance Limited Africa institutions in Africa. The project will promote greater advancement and access to finance to SMEs with 25% carved out for WSMEs. empowerment Health 46047 Eurofarma Brazil Eurofarma is a life science manufacturing company 154.59 Access to essential Laboratórios headquartered in Brazil with presence across Latin services S.A. America. The project will fund the construction of a greenfield pharmaceutical manufacturing plant to produce oral solids and antibiotics and the equipment needed to do the fill and finish of the Pfizer COVID-19 vaccine in Brazil. 17 Disclosure link is to the parent project which also covers this project. 37 Sector Project Institution Country Project Eligible Loan Social Bond Sustainable ID Name or Region Description Commitment Principles Development (US$ millions) Categories Goals Health 46445 União Química Brazil UQ is a life science manufacturing company headquartered 65 Access to essential Farmacêutica in Brazil. The project will increase access to vaccines and services Nacional SA much-needed medication in Brazil, including additional (UQ) capacity for COVID-19 medication. COVID-19 45483 Express Union Chad EUT is a subsidiary of Express Union Holding, a holding 1.05 Access to essential Response Tchad (EUT) company with shareholdings in microfinance institutions services operating in seven countries in Central and West Africa. The project will help increase the company’s lending capacity to retail borrowers in Chad. COVID-19 45584 Rawbank SA Democratic RB is the largest bank in DRC. The project will support the 35 Access to essential Response (RB) Republic of growth of the Bank’s MSME portfolio. services Congo COVID-19 46617 Evocabank Armenia Evocabank is a commercial bank in Armenia. The project 15 Access to essential Response Closed Joint will support the bank’s lending to MSMEs. services Stock Company COVID-19 46966 Diamond Trust Kenya DTB is a leading regional banking group, operating in East 100 A  ccess to essential Response Bank Kenya Africa. The project will provide working capital facilities to services Limited (DTB) DTB to support its capacity to sustain operations to on- lend to its clients (including SMEs) and expedite post-crisis recovery. COVID-19 47305 Premiere Madagascar PAMF was founded by the Aga Khan Agency for 2 Access to essential Response Agence de Microfinance (AKAM) to complement the network’s services Microfinance humanitarian activities with microfinance services for the (PAMF) poor in some of Madagascar’s most remote areas. PAMF is Madagascar’s largest microfinance institution by number of clients (>400,000) and has launched digital nano-loans. The project will improve access to finance for consumers and micro and small-sized enterprises to support economic activity and resilience in the aftermath of the COVID-19 crisis. COVID-19 NMB Bank PLC Tanzania NMB is the second largest bank in Tanzania and has a 100 Access to essential 47379 Response strong footprint in the country. The project will help the services bank meet the COVID-19 related working capital and trade- related needs of its clients, all of which are SMEs. 38 Sector Project Institution Country Project Eligible Loan Social Bond Sustainable ID Name or Region Description Commitment Principles Development (US$ millions) Categories Goals Housing 46494 Tata Capital India TCHFL is a wholly owned subsidiary of Tata Capital Limited 136.11 Affordable housing Finance Housing (TCL), a housing finance company (HFC) with a focus on Finance mortgage and residential housing construction finance. Limited The project will support TCHFL in expanding its housing (TCHFL) finance portfolio, including sub-segments like affordable housing finance. Housing 47215 Banco Colombia Davivienda is the second largest bank in Colombia and 275 Affordable housing Finance Davivienda offers a wide range of financial services to retail, SME and SA corporate clients. The project will improve access to finance for female-headed social households, WSMEs and LGBTI people. Housing 4728918 Home First India Home First is an affordable housing finance company 33.88 Affordable housing Finance Finance that caters to first time home buyers in low and middle- Company income groups who are underserved by banks and large Limited housing finance companies. The project is expected to provide counter-cyclical support for the housing needs of this target audience and intends to support the growing demand for green individual housing, which is still underdeveloped in India, particularly in the affordable segment. Housing 4729819 Housing India HDFC Limited was the first specialized housing finance 400 Affordable housing Finance Development company in India involved in providing finance to Finance individuals and to corporates/developers for the purchase, Corporation construction, development and repair of houses and Limited (HDFC commercial properties. In July 2023, HDFC Limited merged Limited) with its subsidiary HDFC Bank Limited, becoming the largest private sector bank and second largest bank in India. The project will provide financing to retail buyers for affordable housing. Education 46778 Universidad Chile Santo Tomás is a non-profit higher education private 51.42 Access to essential Santo Tomás institution in Chile that targets lower and emerging services middle-income segments. The project will increase reach to students and improve students’ employability. Impact for this project has been described qualitatively as indicators cannot be disclosed for confidentiality reasons. 18  19 Impact for this project has been described qualitatively as indicators cannot be disclosed for confidentiality reasons. 39 Sector Project Institution Country Project Eligible Loan Social Bond Sustainable ID Name or Region Description Commitment Principles Development (US$ millions) Categories Goals Information 45894 M-KOPA Africa M-KOPA is the one of the largest pay-as-you-go companies 65 Access to essential and Holdings Region in Sub-Saharan Africa. Through M-KOPA’s inclusive digital services Communication Limited credit model, customers can build ownership over time Technology by paying an initial deposit followed by flexible and affordable micro-payments. Its primary product offerings are smartphones, solar home systems and cash loans. The project will increase access to finance and improve affordability of smartphones including for underserved segments in Kenya and Uganda. Information 47573 Nu Colombia Colombia Nubank is one of the world’s largest digital services 62.5 Access to essential and SA platforms, with over 70 million customers in Latin America. services Communication Since its launch in 2013, it has fostered financial inclusion in Technology Latin America by banking millions of previously unbanked and underserved populations. The project will help provide credit card access to unbanked and underbanked individual populations in Colombia. Agribusiness 46198 Meghna Group Bangladesh Tanveer Food Limited (TFL) is a subsidiary of the Meghna 21 Food security and (Tanveer Food Group of Industries (MGI) which is one of Bangladesh’s sustainable food Limited and largest leading conglomerates. The project will improve systems Guarantors) food safety through the adoption of best technologies and practices in an otherwise largely unorganized rice sector. The project will contribute to increasing food security for consumers through increased production, processing, and distribution of hygienically packaged quality rice (staple food) in underserved areas of Bangladesh. The project will also enhance smallholder rice farmers' income by providing offtake opportunities, reducing storage periods, and improving the paddy quality through immediate purchases. Agribusiness 46206 Anyou China Anyou is a leading animal feed producer in China. The 37.81 Food security and Biotechnology project will expand the company’s eco-friendly and sustainable food Group Co.,Ltd antibiotic-free feed (Eco-feed) capacity in frontier regions in systems China (Guizhou, Gansu, Yunnan), and Hubei province. The project also will increase raw material procurement from crop farmers, thereby enhancing their income. 40 Photo by Djenno Bacvic/IFC 41 Appendix A IFC Green Bond Program Process IFC’s Green Bond Program follows best market practice and complies with the Green Bond Principles. 1 Use of Proceeds In December 2022, IFC updated its Green Bond Framework to incorporate elements of blue finance and biodiversity. IFC’s project selection criteria have been reviewed by Shades of Green, formerly part of CICERO, now a part of S&P Global, which provided a Second Opinion on IFC’s framework and guidance for assessing and selecting eligible projects for green bond investments. IFC projects eligible for green bond financing are selected from IFC’s climate- related project portfolio. (Equity investments and guarantees are ineligible for funding via green bonds). Net proceeds of IFC’s green bond program will be used to finance assets or activities that substantially contribute to at least one of the following environmental objectives: A Climate change mitigation  IFC applies a subset of the Common Principles for Climate Mitigation Finance Tracking to identify activities and assets that contribute to climate change mitigation. These include: i. Activities that entail negative emissions or very low emissions, resulting in negative, zero, or very low greenhouse gas emissions and full compliance with the long-term temperature goal of the Paris Agreement. Examples include carbon sequestration in land use and renewable energy. ii. Activities that enable other actions that make a substantial contribution to climate change mitigation, such as the manufacture of very low- emission technologies. Photo by Linh Nguyen/IFC 42 B Climate change adaptation D Ocean and water protection IFC applies the Joint MDB Methodology for Tracking Climate Change IFC’s Guidelines for Blue Finance detail the specific criteria and guidance for  Adaptation Finance. The methodology, developed jointly by multilateral each group of activities. Only projects with documentation and evidence development banks in 2012 and updated in 2022, identifies adaptation confirming a substantial contribution to ocean and water protection or activities that contribute to climate change adaptation to identify activities measurable impact are eligible. These include: and assets that contribute to climate change adaptation. These include: i. Water supply: investments in the research, design, development, and i. Activities that integrate measures to manage physical climate risks and implementation of efficient and clean water supply ensure that the project’s intended objectives are realized despite these risks ii. Water sanitation: investments in the research, design, development, and ii. Activities that directly reduce physical climate risk and build the adaptive implementation of water treatment solutions capacity of the system within which the activity takes place iii. Ocean-friendly or water-friendly products: investments in the value chain, iii. Activities that contribute to reducing the underlying causes of including production, packaging, and distribution of environmental- vulnerability to climate change at the systemic level and/or removing friendly products that avoid water or ocean pollution knowledge, capacity, technological and other barriers to adaptation iv. Ocean-friendly chemicals and plastics sectors: investments in the research, design, development, and implementation of measures to C Biodiversity protection manage, reduce, recycle, and treat plastic, pollution, or chemical waste in The IFC Reference Guide for Biodiversity Finance details the specific criteria coastal and river basin areas and guidance for each group of activities. Projects are eligible only if they have available documentation and evidence confirming a substantial v. Sustainable shipping and port logistics sectors: investments in the contribution to biodiversity protection or measurable impact. research, design, development, and implementation of water and waste These include: management and reduction measures in shipping vessels, shipping yards, and ports. i. Investment activities that seek to generate biodiversity co-benefits within or through established business operations and production practices vi. Fisheries, aquaculture, and seafood value chain: sustainable production and waste management and reduction measures that meet, keep, or ii. Investments in biodiversity conservation and/or restoration as the exceed Marine Stewardship Council certification standards or equivalent primary objective certification standards approved by IFC iii. Investments in nature-based solutions to conserve, enhance, and restore vii. Marine ecosystem restoration ecosystems and biodiversity viii. Sustainable tourism services ix. Ocean-friendly offshore renewable energy facilities 43 2 Project Evaluation and Selection Confirmation that the project has successfully passed a rigorous due iii.  The long list of IFC Green Bond eligible projects is subject to a thorough diligence process that includes disclosure and consultation requirements, evaluation and selection process before being included in the IFC Green Bond and integrity due diligence portfolio. When IFC invests in a third-party green bond, the green bond must be iv.  aligned with the Green Bond Principles, have a second party opinion, and the This process includes: issuer should be committed to publicly report on use of proceeds i. Confirmation of the good standing of the project in compliance with the IFC Sustainability Framework. This framework entails a Policy on Environmental The following projects are not eligible for the IFC Green Bond Program: and Social Sustainability that defines IFC’s commitments to environmental i. Projects involving new or existing extraction, production, and distribution of and social sustainability, IFC’s Performance Standards, and the Access to fossil fuels, including improvements and upgrades Information Policy, which articulates IFC’s commitment to transparency. ii. Projects where the core source of energy is based on fossil fuels and other IFC’s Environmental, Social and Corporate Governance assessment is based projects that support carbon intensive activities on the application of the IFC Performance Standards, including the World iii. Hydropower projects Bank Group Environmental, Health, and Safety Guidelines and the Corporate Any power project with a carbon intensity above 50 grams of carbon dioxide iv.  Governance Methodology to all investments. equivalent per kilowatt-hour of generated electricity IFC's Performance Standards establish requirements that the client is to v. Assets that partly combust fossil fuels, such as hybrid vessels, and only meet throughout the life of an investment by IFC, which comprises of: replacement of existing fleets with electric or hydrogen-based fleets • Assessment and management of environmental and social risks and impact vi. Livestock projects • Labor and working conditions 3 • Resource efficiency and pollution prevention • Community health, safety, and security • Land acquisition and involuntary resettlement • Biodiversity conservation and sustainable management of living natural Management of Proceeds resources All proceeds from IFC green bonds are set aside in a special sub-portfolio • Indigenous peoples within IFC Treasury and are invested in accordance with IFC’s liquidity policy • Cultural heritage until disbursement to eligible projects. Disbursements are often made over a period of time, depending on a project’s disbursement schedule. As green bond proceeds are disbursed, corresponding amounts are adjusted from the sub- ii. Confirmation that the project meets IFC’s requirements on Paris Alignment portfolio accordingly. 44 Interpreting Indicators Impact indicators are tracked on a project-level basis and are not pro-rated for the portion of IFC’s contribution. The impact of direct investments is based on ex-ante estimates, developed before project implementation, of expected annual results for a representative year once a project is complete and operating at normal capacity. The impact of indirect investments, such as through financial intermediaries, are conservatively estimated based on the likely allocation of use of proceeds among the eligible project types. Indirect investments ensure climate finance is available for smaller clients that IFC cannot reach directly, such as small and medium enterprises. Photo by Amit Ramrakha KKCF/IFC IFC Access to Information Policy The Access to Information Policy is the cornerstone of the IFC Sustainability Framework and articulates our commitment to transparency. We seek to 4 provide accurate and timely information regarding our investment and advisory activities to clients, partners, and stakeholders, and we strive to disclose the relevant information pertaining to project, environmental, and social implications, as well as expected development impact prior to consideration by Reporting our Board of Directors. This commitment also applies to the impact reporting On an annual basis, IFC publishes the list of projects that are eligible to receive process of projects funded by the IFC Green Bond Program. funding from green bond proceeds. Subject to confidentiality approvals, the list of projects includes: a brief description of the project, the amount disbursed, For each proposed investment or advisory services project, IFC discloses relevant the expected environmental impact(s), and links to relevant public documents project information, environmental and social implications, and expected about the project. development impact on its Project Information and Data Portal. Investments are disclosed prior to consideration by IFC’s Board of Directors, and advisory IFC’s annual Green Bond Impact Report is grounded on the recommendations projects are disclosed following project approval. In addition, for those projects of the Green Bond Principles’ Handbook – Harmonized Framework for Impact with potentially significant adverse environmental or social risks, IFC may Reporting and presents the core sustainability indicators relevant to climate disclose an Environmental and Social Impact Assessment prepared by the client mitigation and adaptation, ocean, water, and biodiversity protection in line in an Early Disclosure before IFC has completed its investment review. with the impact metric and sector specific guidance of the handbook. For more information on IFC’s climate business, please visit www.ifc.org/climatebusiness 45 Appendix B IFC Social Bond Program Process IFC’s Social Bond Program follows best market practices and complies with the Social Bond Principles. 1 These include projects financed by IFC that meet the criteria as stated above, such as: IFC’s Banking on Women Projects that lend to financial intermediaries with the requirement that IFC loan Use of Proceeds proceeds be on-lent to women-owned micro, small, and medium enterprises. All proceeds from IFC Social Bonds are allocated within IFC’s General Liquidity Cash Account to a sub-portfolio linked to lending operations for social bond IFC’s Inclusive Business eligible projects. Only the loan portions of projects are eligible for funding via Projects with companies that integrate underserved people at the base of the social bond proceeds. Equity investments and guarantees are ineligible. Eligible pyramid into a company’s value chain. For example, projects that: projects are funded, in whole or in part, by IFC and meet the requirements of IFC’s • Provide health or education services Banking on Women, Inclusive Business, COVID-19 Response or Global Health • Develop affordable housing Platform programs. • Expand access to telecommunications, such as broadband or mobile phones • Provide electricity or water services The Social Bond Program supports projects that aim to achieve positive • Source from small farmers social outcomes especially but not exclusively for a target population. Social project categories as indicated within the Social Bond Principles include, • Offer access to finance but are not limited to, providing and/or promoting: • Sell through small mom-and-pop retailers A  Affordable basic infrastructure (e.g., clean drinking water, sewers, sanitation, transport, energy) IFC’s COVID-19 Response Projects selected from IFC’s COVID-19 Response Financing Facilities. This B  Access to essential services (e.g., education and vocational training, package makes available fast-track financing to existing IFC clients who healthcare, financing, and financial services) demonstrate a clear impact on their business due to the COVID-19 pandemic. C  Affordable housing Among other criteria, clients must be in good standing with IFC and compliant D  Employment generation including through the potential effect of with environmental, social, and governance (ESG) requirements20. SME financing and microfinance of small and medium enterprises IFC’s Global Health Platform E Food security Projects that are a part of IFC’s Global Health Platform provide financing F  Socioeconomic advancement and empowerment solutions to manufacturers, suppliers, and service providers for capacity expansion and working capital requirements to increase the supply of affordable health care products and services in developing countries. The platform is a critical component of the second phase of pandemic response. 20 IFC’s Fast Track COVID-19 Facility (FTCF), except the Base of the​Pyramid (BOP) Program, expired on June 30, 2023. 46 2 Evaluation and Selection In addition to meeting social bond eligibility criteria, all projects financed undergo a rigorous due diligence process. Eligible projects comply with IFC Performance Standards on Environmental and Social Sustainability and the IFC Corporate Governance Framework. Projects are subject to ongoing monitoring and supervision. Photo by Nadia Bseiso 3 regular reports by the investee company on project activities and performance throughout the lifetime of investment. Payments of interest and principal in respect of IFC Social Bonds are strictly based on the credit quality of IFC and Management of Proceeds are not directly affected by the result of the underlying investments IFC makes The net proceeds of the issuances of IFC’s Social Bonds, which may be converted consistent with the eligibility criteria outlined above. into U.S. dollars, will be allocated within IFC’s Treasury to a designated sub- portfolio that will be invested in accordance with IFC’s liquid asset management 4 investment guidelines. So long as the bonds are outstanding, the balance of the sub-portfolio will be reduced by amounts matching disbursements made by IFC in respect of select “Eligible Projects“ from IFC’s loan portfolio, which may include projects that benefit women-owned enterprises (“Banking on Women Eligible Projects”), inclusive business projects (“Inclusive Business Eligible Projects”), Reporting COVID-19 Response projects, Global Health Platform projects and projects that IFC’s Social Bond Impact Report follows best practices and the Social Bond meet the criteria stipulated in the Social Bond Principles as published by the Principles’ guidance for reporting outlined in the report, Working Towards a International Capital Markets Association (“Social Bond Principles Projects”). Harmonized Framework for Impact Reporting for Social Bonds, which aims Eligible projects will be selected from all projects funded, in whole or in part, by to ensure integrity of the market through increased transparency. The report IFC. IFC reserves the right to lend directly or indirectly. In some cases, the social- provides a list of projects eligible for funding from social bond proceeds and, related component of a project supported by social bonds forms part of a larger subject to confidentiality considerations, provides a brief description of investment. In such instances, the social bond portfolio only finances the eligible each project, the eligible loan amount, and the expected social impact on an portion of the project. Monitoring and supervision of eligible projects comprises aggregate level. The report only covers projects eligible for social bond financing. 47 Selecting Impact Metrics For the past decade, IFC and other multilateral and bilateral development institutions have worked to identify common development indicators for investment projects. These efforts led to the Harmonized Indicators for Private Sector Operations, agreed upon by 26 international finance institutions. The indicator list is primarily comprised of sector-level outcome indicators. To Photo by Eka Nickmatulhuda report on the impact of our Social Bond Program, IFC uses many of the sector specific indicators agreed upon in the HIPSO partnership, incorporating additional indicators as needed. Indicators include: Real Sector Financial Sector • Farmers reached Number of outstanding loans • to women-owned SMEs21 Number of mobile • subscriptions Number of outstanding • (people reached) microfinance loans Patients served • Number of outstanding • housing loans • Students reached Photo by Anindito Mukherjee/IFC 21 Number of outstanding loans to women-owned SMEs is not an indicator of the Harmonized Indicators for Private Sector Operations. 48 48 Interpreting Indicators IFC Access to Information Policy Wherever possible, IFC strives to quantify impact by sector. Impact may be The Access to Information Policy is the cornerstone of the IFC Sustainability described qualitatively when indicators are unavailable or cannot be disclosed Framework and articulates our commitment to transparency. We seek to for confidentiality reasons. Impact indicators are tracked on a client-level provide accurate and timely information regarding our investment and basis and are based on company-reported data. Impact of the projects has advisory activities to clients, partners, and stakeholders, and we disclose not been prorated for the portion on IFC’s contribution. Social Bond Program relevant information pertaining to project, environmental and social reporting allows for quantification of a core indicator per sector, but it is implications, as well as expected development impact prior to consideration important to appreciate the limitations of data reported. by our Board of Directors. This commitment applies to projects funded by the Social Bond Program. The main considerations to interpret results are:  cope of results: Reporting is based on ex-ante estimates at the time of • S project approval and mostly for direct project effects.  ncertainty: An important consideration in estimating impact indicators • U is that they are often based on multiple assumptions. Actual impact of projects may diverge from initial projections.  omparability: Caution should be taken in comparing projects, sectors, or • C portfolios because baselines (and base years) may vary. In addition, sector and country context should also be taken into consideration.  missions: Projects may have impact across a much wider range of • O indicators than captured in the reporting and may have other important development impacts. Furthermore, the core indicator is not applicable for some projects, or the data are not available. For more information on IFC’s Social Bond Program, visit www.ifc.org/socialbonds 49 Authors Disclaimer This report was prepared by IFC’s Funding & Investor Relations team with This document has been prepared for informational purposes only, and the support from IFC’s Climate Business, Gender and Economic Inclusion, and information herein may be condensed or incomplete. IFC specifically does not Communications teams. make any warranties or representations as to the accuracy or completeness of these materials. IFC is under no obligation to update these materials. This The authors are Ayelet Perlstein, Marsha Monteiro and Obert Limbani with document is not a prospectus and is not intended to provide the basis for the contributions from Carolyne Danilla, Francisco Avendaño, Hongze Guo and evaluation of any securities issued by IFC. This information does not constitute Kaikham Onedamdy of the Climate Business Department; Kathleen Mignano of an invitation or offer to subscribe for or purchase any of the products or services the Gender and Economic Inclusion Department; Hlazo Mkandawire and Irena mentioned. Under no circumstances shall IFC or its affiliates be liable for any Guzelova of the Communications team. loss, damage, liability, or expense incurred or suffered which is claimed to have Our appreciation goes to Flora Chao, Irina Likhachova, Luyen Tran, Alan Lukoma resulted from use of these materials, including without limitation any direct, and Bing Yuliawati for their valuable data and expert opinion and to Victoria indirect, special or consequential damages, even if IFC has been advised of the Sloane for her editorial review. possibility of such damages. For additional information concerning IFC, please refer to IFC’s current Information Statement, financial statements, and other relevant information available at www.ifc.org/investors. Icons made by Freepik 50 IFC Investor Relations International Finance Corporation 2121 Pennsylvania Avenue NW Washington, D.C. 20433 Email: investors@ifc.org LinkedIn: IFC Treasury & Mobilization ifc.org/investors February 2024 51