On May 29, 2018, IFC, a member of the World Bank Group and the largest global development institution focused on the private sector in emerging markets, signed an agreement with Luxembourg to support the creation of new markets for climate finance in emerging economies—by developing green-bond policies, training bankers and executives, and helping countries adopt the Green Bond Principles and other best practices.
Luxembourg and IFC have a long partnership. To date, Luxembourg has provided about $28 million of cumulative funding to support IFC’s advisory work on a global scale. In April, Luxembourg agreed to provide a further $8.65 million (€7 million) to IFC’s Advisory Services programs over the next four years. Now, Luxembourg is providing €1 million to IFC’s Green Cornerstone Bond Fund Support Program, a technical assistance program managed by IFC to complement the Amundi Planet Emerging Green One Fund—the world’s largest targeted green bond fund focused on emerging markets.
Over the last decade, Luxembourg has taken the lead in Europe in the field of green finance, with a special focus on the bond market. The first ever green bond was listed in Luxembourg in 2007, and today the Luxembourg Green Exchange displays almost half of all listed green bonds worldwide.
The Amundi Planet Emerging Green One fund, which closed in March with IFC as a key investor, is expected to significantly increase the scale and pace of climate finance in emerging markets by crowding in capital from investors. The fund is listed on the Luxembourg Stock Exchange.
About IFC
IFC works with more than 2,000 businesses worldwide, using their capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In FY17, IFC delivered a record $19.3 billion in long-term financing for developing countries, leveraging the power of the private sector to help end poverty and boost shared prosperity. For more information, visit www.ifc.org.
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