The World Bank Group member IFC issued a green bond to support biodiversity and ecosystem conservation projects in emerging markets. The five-year bond, worth 2 billion Swedish krona (about US$184 million), was underwritten by Skandinaviska Enskilda Banken AB (SEB) with sole credit support by Swedish pension fund AP7.
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Advancing the Global Biodiversity Agenda
This bond marks IFC’s second green bond dedicated to biodiversity, showcasing its leadership in this growing sector.
Tom Ceusters, IFC Director for Treasury Capital Markets and Investments, said, “This issuance marks IFC’s second green bond dedicated to biodiversity, reinforcing our leadership in developing this critical market.”
He added, “By mobilizing private capital for biodiversity projects, we are demonstrating how financial innovation can address sustainability challenges while driving economic growth.”
Moreover, the bond aligns with the goals of the Global Biodiversity Framework, which was a central theme at COP16 on Biodiversity in Cali, Colombia. Ben Powell, Head of Sustainability, Fixed Income at SEB, noted that the bond exemplifies collaboration with the private sector to raise awareness and deliver impactful biodiversity projects.
IFC has been at the forefront of creating frameworks to support biodiversity finance. In 2022, IFC introduced the Biodiversity Finance Reference Guide to help investors and governments identify opportunities in biodiversity and ecosystem restoration. In 2024, IFC also released the supplement Biodiversity Finance Metrics for Impact Reporting, introducing standardized metrics to assess biodiversity investment impacts.
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Proceeds to Fund Reforestation and Forest Conservation
Green bond proceeds will also support projects including BTG Pactual Timberland Investment Group’s reforestation work in Latin America and BBVA Colombia’s biodiversity bond to restore natural forests in Colombia. These projects will help in the global efforts to conserve ecosystems and foster sustainable economic growth in emerging markets.