JAKARTA (THE JAKARTA POST/ASIA NEWS NETWORK) - International Finance Corporation (IFC), a member of the World Bank Group, has issued its inaugural Indonesian rupiah Komodo green bond, attracting strong investor demand and raising Rp 2 trillion (S$182 million) to combat climate change.
"The issuance of IFC's green Komodo bond underscores our commitment to support Indonesia in achieving environmentally sustainable economic growth," said Nena Stoiljkovic, IFC's vice president for Asia and the Pacific.
"The bond allows us to mobilise international funding into Indonesia's climate-friendly projects and we intend to replicate and scale up this model to address the country's climate challenges."
This is the first such green Komodo offshore rupiah-denominated issuance by a multilateral development bank for investment into climate projects in Indonesia.
The five-year green bond, which will be listed on both the London Stock Exchange and the Singapore Stock Exchange, will support the local-currency market in Indonesia, funding the first-ever green bond issued in Indonesia by an IFC client, Bank OCBC NISP. The proceeds will finance underlying infrastructure and climate-related projects.
Jingdong Hua, IFC's vice president and treasurer, said the first ever green Komodo bond issued in rupiah for climate investment in Indonesia was a significant milestone for IFC and for Indonesia to help the private sector manage foreign exchange risk through local-currency financing.
Since launching the Green Bond Program, IFC has raised billions of dollars for clean energy, climate-smart cities, green buildings and green finance. As revealed in IFC's Green Bond Impact Report released on Monday, IFC issued 32 green bonds totaling US$1.8 billion in the fiscal year that ended June 30.