IFC, a member of the World Bank Group, has issued a series of Uridashi Green Bonds, reflecting its strong commitment to reducing greenhouse-gas emissions by supporting climate-friendly projects in developing countries.

 

An Uridashi bond is a bond denominated in a foreign currency and sold directly to Japanese retail investors. Funds raised from IFC Uridashi Green Bonds are set aside in a separate account for investing exclusively in renewable energy, energy efficiency, and other climate-friendly projects in developing countries. Through IFC Green Bonds, investors can directly support climate change-related projects in the developing world.

 

Nomura was the lead manager in IFC’s first Uridashi Green Bond issue in February 2011, and it is the lead for this latest multi-tranche offering in Australian dollars, South African rand, and EUR.

 

“Given the increasing concerns over climate change, Nomura is bridging the needs of individual investors who wish to participate in environmental solutions with the funding needs of climate change mitigation efforts worldwide,” says Yuji Hibino, managing director for Nomura’s retail planning department.

 

This is the third time that IFC has issued bonds related to renewable-energy and energy-efficiency projects.

 

“This latest issue maintains IFC’s consistent approach to this market,” adds Jingdong Hua, IFC vice president of treasury and information technology. “Our Green Bond issues contribute to IFC’s climate-change strategy, offering both development impact and good return for investors.”

 

Projects that may be funded by the Green Bonds include rehabilitation of power plants and transmission facilities to reduce greenhouse-gas emissions, solar and wind installations, and funding for new technologies that result in significant reductions in emissions.