IFC Raises $134 Million For Climate Investment

International Finance Corporation (IFC) has raised a whopping $134 million to combat climate change through its inaugural Indonesian Rupiah Komodo green bond.

The cooperation, which is a member of the World Bank Group, disclosed this in a statement issued on October 8th 2018.

In what is known to be the first issuance by a multilateral development bank for investment into climate projects in Indonesia, the five-year green bond will support the local-currency market in the country.

“The issuance of IFC’s green Komodo bond underscores our commitment to support Indonesia in achieving environmentally sustainable economic growth,” said Nena Stoiljkovic, IFC’s Vice President for Asia and the Pacific.

“The bond allows us to mobilize international funding into Indonesia’s climate-friendly projects and we intend to replicate and scale up this model to address the country’s climate challenges.”

Jingdong Hua, IFC’s Vice President and Treasurer, said: “This first-ever green Komodo bond issued in Indonesian rupiah for climate investment in Indonesia is a significant milestone for IFC and for Indonesia, helping the private sector manage foreign exchange risk through local-currency financing while growing the climate-smart business.”

“IFC’s inaugural Green IDR offering firmly established its presence in the nascent Komodo, where it was able to take advantage of the recent stability in IDR and post Bank Indonesia’s meeting to raise 2 trillion IDR of the 5-year offering. The transaction garnered strong global support and allowed IFC to push the boundaries on both tenor and size achievable in the current market environment,” Adrien de Naurois, EMEA Syndicate, BAML said

John Lee Tin, Head of SSA DCM, J.P. Morgan said: “Investors reacted positively to IFC’s debut Komodo (Indonesian Rupiah) transaction, with the eurobond issue attracting more demand than originally intended.

“Given current volatility in emerging markets, the deal’s oversubscription represents a high level of success. Additionally, IFC widened out the scope of its green bond reach with investors, using this as an opportunity to add a new currency, hence a new investor base, for the issuer’s climate awareness efforts.”

Henrik Raber, Global Head, Credit Markets, Standard Chartered Bank, said: “Standard Chartered is committed to the development of more carbon-efficient financing solutions in our footprint markets and we are proud to partner with IFC on this landmark issuance.

“The strong investor response to IFC’s transaction highlights the increasing focus and importance of the global investor community is placing on supporting sustainable financing solutions to help tackle climate change.”