IFC issues bonds in Azerbaijani manats to support green projects

[ad_1] BAKU, Azerbaijan, December 18. The Worldwide Finance Company (IFC), a member of the World Financial institution Group, has issued bonds denominated in Azerbaijani manat (AZN) to broaden entry to credit score for micro, small, and medium-sized enterprises, help low-income households, and finance inexperienced initiatives in Azerbaijan, Pattern experiences.

The four-year bonds raised 34 million manat (about $20 million), geared toward rising entry to local weather financing for companies and low-income households whereas selling the event of climate-focused initiatives within the nation.

The bonds, listed on the Luxembourg Inventory Change (LuxSE), are designed to strengthen social resilience and broaden entry to inexperienced applied sciences for a wider viewers. Customary Chartered Financial institution acted because the supplier.

Keshav Gaur, IFC’s Director of Treasury Shopper Options, commented on the bond issuance, stating that by leveraging capital markets, IFC permits companies to safe financing within the native foreign money, lowering the dangers related to overseas foreign money borrowing.

“These bonds not solely help non-public enterprise and environmentally sustainable initiatives but additionally contribute to the diversification of Azerbaijan’s financial system, strengthening its resilience and guaranteeing long-term development,” Gaur stated.

Theodor Kirschner, Managing Director of Capitulum Fund, emphasised the corporate's anticipation for additional collaboration to develop the asset class.

“We worth our longstanding partnership with IFC, which persistently supplies us entry to native rates of interest in engaging rising markets like Azerbaijan whereas guaranteeing the clear and sustainable use of the raised funds. We glance ahead to additional collaboration to advance our asset class and promote sustainable initiatives,” Kirschner added.

Since 2020, IFC has issued bonds totaling greater than 189 million manat ($111.1 million) with maturities starting from one to 4 years and rates of interest as much as 300 foundation factors under the authorities benchmark.

IFC, a member of the World Financial institution Group, is the biggest world improvement establishment devoted to fostering non-public sector development in rising markets. With a presence in over 100 international locations, IFC leverages its capital, experience, and world affect to create alternatives and drive improvement. In fiscal 12 months 2024, IFC dedicated a report $56 billion to non-public sector initiatives, mobilizing sources to fight poverty and promote sustainable improvement.