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The International Finance Corporation, the World Bank's investment arm, has raised 2 trillion rupiah ($131.5 million) via green bonds to help fund infrastructure and climate-related projects in Indonesia. The bonds will be the first green offshore debt denominated in rupiah sold by a multilateral development bank, the IFC said in a statement today.
“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,” Nena Stoiljkovic, IFC Vice-President for Asia and the Pacific, said.
Previously, the IFC has issued green bonds in other emerging market currencies, including Indian rupee, Chinese yuan and the Philippine peso. The lender had sold 32 green bonds totalling $1.8 billion in the fiscal year ended June 2018.
The IFC statement quoted John Lee Tin of JP Morgan, one of the sale's underwriters, as saying the bonds were received “positively” by global investors. “Given current volatility in emerging markets, the deal's oversubscription represents a high level of success,” he said.
The bonds will be listed on stock exchanges in London and Singapore. In February, Indonesian government became the first in Asia to issue global green bonds, selling $1.25 billion in green sukuk. ($1 = 15,207 rupiah)
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