News + Views SRI Edition IFC Funding, Issue 12, April 2019 IFC Green Bonds “Doing good business – being ethical, being transparent, being caring, implementing A Sizzling Idea for a values in your business – makes a difference, Hot Planet and you make money at the same time.” Watch the Funding team - Shari Arison, philanthropist explain how IFC’s Green Bond Program works for IFC Social Bonds a cooler planet and a sustainable future here. IFC has issued 10 social bonds totaling close to USD 500 million in FY19 year to date. In January 2019, IFC more than doubled the outstanding volume of its Kangaroo Financial year (FY) 2019 year to date, IFC has issued social bond through a tap. The final book totaled AUD close to USD 1.6 billion in green bonds through 32 520 million and was eventually capped at AUD 400 trades. We have had a steady flow through private million, which attests to strong demand for themed placements in USD, MXN, JPY, ZAR, SEK, and more bonds and increased product recognition in this market. recently, EUR. IFC also enjoyed increased volumes for its green retail programs in the US, Japan and Italy. This trade was the first tap following the inaugural Kangaroo social bond issuance in March 2018. This was a Days into FY19, IFC issued its inaugural Sterling green five-year AUD 300 million trade with 2.70 percent coupon bond: a 5-year GBP 350 million with a 1.25 percent and bought by more than 15 institutional investors across coupon. The trade was the first green bond launched by a the world. multilateral development bank in the Sterling market since 2015 and attracted strong investor interest, with 52 Since launching the Social Bond Program, IFC has issued percent of demand coming from UK-based investors. We social bonds in Uridashi format in a variety of currencies, tapped this line in October 2018, taking the total such as TRY, AUD, BRL, MXN and ZAR, that are bought by outstanding to GBP 500 million. Japanese retail investors. IFC also continues to issue social bonds through private placements. Read more about IFC’s FY18 green bond issuances here. IFC Green Bonds IFC Social Bonds Cumulative issuance as of March 31, 2019 Cumulative issuance as of March 31, 2019 AUD TRY JPY ZAR Volume ZAR Volume MXN 1.9% 0.7% 0.6% 0.1% 2.1% $9.1 billion EUR 1.9% Other $1.4 billion BRL 2.6% 6.2% 4.1% TRY Number of green Number of social 2.9% bonds issued SEK bonds issued BRL 142 3.5% 6.6% 26 AUD USD GBP 37.5% 54.9% Number of 7.2% USD Number of 67.3% currencies issued in currencies issued in 16 7 FY18 Social Bond Impact Report IFC published its FY18 Social Bond Impact Report in March 2019. Proceeds from IFC social bonds supported 38 new eligible projects for a total committed amount of USD 717 million. The impact of these projects is expected to reach over 1 million farmers, support over 100,000 students, provide over 1.5 million microloans, and more. View the full report here. Curious about IFC’s FY18 Green Bond Impact Report? View the report here. A Partnership for Sustainable Capital Markets Awards In April 2019, the World Bank Group (WBG) and Japan’s » In March 2019, IFC was named Green Bond Government Pension Investment Fund (GPIF) expanded Development Bank of 2018 by the Climate Bonds their partnership to grow markets for sustainable Initiative for its global leadership, best practice and investing. As part of a broader effort to integrate innovation in green finance. environmental, social and governance (ESG) considerations, GPIF asset managers are investing in green, social and sustainable development bonds issues by IFC and IBRD. Initial investments have surpassed the equivalent of USD 500 million in AUD, EUR and GBP. Earlier, the WBG and GPIF published a joint report on incorporating ESG factors into fixed income investment strategies. View the report here. Others News » John Gandolfo was appointed as IFC Vice President & Treasurer in January. John moved from his role as » A panel of 30 judges made up of the world’s largest Director and Chief Investment Officer of the Pension green, social and sustainability bond investors and Endowments Department at the World Bank. awarded IFC’s Social Bond Impact Report 2018 as Impact Report of the Year in the 2019 Environmental » IFC launched the Operating Principles for Impact Finance Bond Awards. Management at the WBG-IMF Spring Meetings on April 12, 2019. The Principles bring greater transparency, » mtn-i recognized IFC’s social bond issuances in the credibility and discipline to the impact investing Uridashi market by awarding us the Power Performer: market. Learn more about the Principles here. Social Bond Issuer award. Stories of Impact Wind Energy Powers New Possibilities for the Supporting Afghanistan’s Raisin Farmers Dominican Republic Afghan raisins are internationally sought after for their The Dominican Republic’s has historically depended natural and distinctive taste. Years of conflict have heavily on fossil fuel imports to supply energy for the decreased exports in the once flourishing raisin country, which led to high electricity prices. industry, impacting livelihoods of the population. In August 2018, IFC provided an USD 80 million In June 2018, IFC provided a loan to the newly financing package for the construction and operation of established Afghan Samoon Company to support its a grid-connected, 50-megawatt wind farm, called Pecasa. new, state-of-the-art raisin processing plant. IFC’s IFC’s portion of the loan is eligible to be funded with portion of the loan is eligible to be funded with proceeds proceeds from IFC’s green bonds. from IFC’s social bonds. The new wind The new facility farm will ease will source from the country’s an estimated dependence 3,000 local on imported farmers and fossil fuels. provide a boost to the economy. Read the full story here. Read the full story here. www.ifc.org/investors IFC • 2121 Pennsylvania Avenue Bloomberg: IFC investors@ifc.org NW, Washington, DC, 20433 USA @ifc_investors