Australia: IFC’s debut green Kangaroo bond raises $900m

Proceeds of the bond will support climate-smart projects including clean energy, green banking and energy efficient buildings in developing economies

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The International Finance Corporation (IFC), part of the World Bank Group, has raised AUD$900 million (£506m) after the issuance of its first green bond in the Australian dollar market.

Proceeds of the fixed-rate green Kangaroo bond, due to mature in May 2027, will support climate-smart projects including clean energy, energy efficient buildings, transport, green banking, agriculture and climate adaptation in developing economies.

According to the IFC, it is the largest Australian dollar green bond issued by a multilateral development bank in 2022.

John Gandolfo, IFC Vice President and Treasurer, Treasury & Mobilisation said: “Emerging markets will represent the lion’s share of the world’s emissions growth. Crowding in investor capital to fund climate-smart projects in developing countries is critical to building a prosperous, resilient and low carbon economy.

“I’m delighted by investors’ strong interest in our debut Kangaroo green bond. It was an opportune time to return to the Kangaroo market after our last Australian dollar benchmark issuance in August.”