The IFC’s first “Social Bond” has raised $500 million for women-led companies and low-income communities.
The issue was the first since International Finance Corp. merged its Banking on Women and Inclusive Business bond programs, which had raised a combined $564 million since 2013.
The IFC, part of the World Bank, will use the latest proceeds to finance women-led companies and those that purchase from small farmers and deliver utilities and basic services such as healthcare and education to the poor in emerging markets.
The California State Teachers’ Retirement System (CalSTRS) and more than 40 other institutional investors bought into the three-year bond, which will be listed on the London Stock Exchange.
The IFC will issue an annual impact report to brief investors on the projects supported by the bond.
Social and sustainable bonds are in demand; fixed-income products now represent more than 60 percent of the $23 trillion of sustainable assets under management.
For a deep dive on the IFC’s Social Bond program, check out the pitch deck.
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Photo credit: Global Banking Alliance for Women