Dec 18, 2024 (MENAFN via COMTEX) --
(MENAFN - Trend News Agency) BAKU, Azerbaijan, December 18. TheInternational Finance Corporation (IFC), a member of the World BankGroup, has issued bonds denominated in Azerbaijani manat (AZN) toexpand access to credit for micro, small, and medium-sizedenterprises, support low-income households, and finance greenprojects in Azerbaijan, Trend reports.
The four-year bonds raised 34 million manat (about $20 million),aimed at increasing access to climate financing for businesses andlow-income households while promoting the development ofclimate-focused projects in the country.
The bonds, listed on the Luxembourg Stock Exchange (LuxSE), aredesigned to strengthen social resilience and broaden access togreen technologies for a wider audience. Standard Chartered Bankacted as the dealer.
Keshav Gaur, IFC's Director of Treasury Client Solutions,commented on the bond issuance, stating that by leveraging capitalmarkets, IFC enables businesses to secure financing in the localcurrency, reducing the risks associated with foreign currencyborrowing.
"These bonds not only support private business andenvironmentally sustainable projects but also contribute to thediversification of Azerbaijan's economy, strengthening itsresilience and ensuring long-term growth," Gaur said.
Theodor Kirschner, Managing Director of Capitulum Fund,emphasized the company's anticipation for further collaboration todevelop the asset class.
"We value our longstanding partnership with IFC, whichconsistently provides us access to local interest rates inattractive emerging markets like Azerbaijan while ensuring thetransparent and sustainable use of the raised funds. We lookforward to further collaboration to advance our asset class andpromote sustainable projects," Kirschner added.
Since 2020, IFC has issued bonds totaling more than 189 millionmanat ($111.1 million) with maturities ranging from one to fouryears and interest rates up to 300 basis points below thegovernment benchmark.
IFC, a member of the World Bank Group, is the largest globaldevelopment institution dedicated to fostering private sectorgrowth in emerging markets. With a presence in over 100 countries,IFC leverages its capital, expertise, and global influence tocreate opportunities and drive development. In fiscal year 2024,IFC committed a record $56 billion to private sector initiatives,mobilizing resources to combat poverty and promote sustainabledevelopment.
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