- Mobilizing private capital for biodiversity: IFC’s 2 billion SEK green bond focuses on restoring ecosystems and promoting biodiversity in emerging markets.
- COP16 drives biodiversity finance agenda: The bond aligns with the Global Biodiversity Framework, a key outcome of COP16.
- Strategic partnerships for sustainable impact: SEB and IFC continue their collaboration to innovate green finance solutions.
The International Finance Corporation (IFC), part of the World Bank Group, has issued a 2 billion SEK green bond dedicated to financing biodiversity initiatives in emerging markets. SEB served as the sole manager for the 5-year transaction, which offers investors a chance to drive economic development while protecting the environment.
“This issuance marks IFC’s second green bond dedicated to biodiversity, reinforcing our leadership in developing this critical market,” said Tom Ceusters, IFC Director for Treasury Capital Markets and Investments. “By mobilizing private capital for biodiversity projects, we are demonstrating how financial innovation can address sustainability challenges while driving economic growth.”
A Response to COP16’s Call for Action
At the UN COP16 on Biodiversity in Cali, Colombia, leaders underscored the importance of unlocking private capital to meet global biodiversity targets. The IFC’s green bond is a direct response to this urgency, channeling private sector investments toward sustainable development.
“COP16 highlighted the need for collaboration with the private sector to raise awareness and create opportunities to deliver on the Global Biodiversity Framework. This transaction is an example of how to put this into practice and deliver positive development impact,” noted Ben Powell, SEB’s Head of Sustainability, Fixed Income.
Related Article: Groupe SEB Unveils 2030 ESG Roadmap, Targets 42% GHG Reductions
Strategic Support from Swedish Pension Fund
Swedish state pension fund AP7 played a pivotal role in the issuance, reinforcing its longstanding commitment to biodiversity.
“We welcome IFC’s increased focus on biodiversity – a longstanding priority for AP7. This investment with IFC enables us to make a meaningful contribution by financing actions to preserve biodiversity,” said Ulrika Lindén, Senior Portfolio Manager at AP7.
Supporting Key Biodiversity Initiatives
Proceeds from the bond will fund initiatives like the BTG Pactual Timberland Investment Group’s reforestation strategy in Latin America and BBVA Colombia’s biodiversity bond—the first of its kind to regenerate Colombia’s natural forests.
This bond continues the partnership between SEB and IFC, which has previously facilitated bonds targeting water resource protection and ocean-friendly projects.
“We have been able to create a great collaboration around themes that IFC, SEB, and our investor clients are increasingly focused on, namely biodiversity, water, and natural capital,” said Powell. “This development has been backed by IFC’s knowledge and experience in these areas. We are confident there’s more to come in 2025.”
Takeaway
IFC’s green bond, backed by SEB and key investors like AP7, exemplifies how public-private partnerships can accelerate biodiversity finance, aligning sustainability with economic growth.
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