IFC raises AUD 700m in green Kangaroo bond for biodiversity

The International Finance Corporation (IFC), part of the World Bank Group, has issued a 10-year green bond in the Kangaroo market, raising AUD 700 million to support biodiversity conservation and economic growth in emerging markets.

Priced with a 4.90 per cent coupon and a spread of 56.48 basis points over the December 2034 Australian Government Bond, the bond attracted nearly AUD 800 million in orders from central banks, official institutions, and bank treasuries.

Funds will finance biodiversity projects, including reforestation strategies like the BTG Pactual Timberland Investment Group’s Latin American reforestation strategy which focuses on restoration and conservation in key regions, and BBVA Colombia’s biodiversity bond, the world’s first biodiversity bond aimed at regenerating natural forests in Colombia

ANZ, Daiwa Capital Markets, and Nomura International arranged the issuance, marking the largest 10-year supranational trade in the Kangaroo market since 2010. Australian dollar issuances account for 19 per cent of IFC’s funding for fiscal year 2024, reflecting the Kangaroo market’s strategic importance.

Attribution: IFC

Subediting: M. S. Salama