BAKU, Azerbaijan, December 18. The International Finance Corporation (IFC), a member of the World Bank Group, has issued bonds denominated in Azerbaijani manat (AZN) to expand access to credit for micro, small, and medium-sized enterprises, support low-income households, and finance green projects in Azerbaijan, Trend reports.
The four-year bonds raised 34 million manat (about $20 million), aimed at increasing access to climate financing for businesses and low-income households while promoting the development of climate-focused projects in the country.
The bonds, listed on the Luxembourg Stock Exchange (LuxSE), are designed to strengthen social resilience and broaden access to green technologies for a wider audience. Standard Chartered Bank acted as the dealer.
Keshav Gaur, IFC’s Director of Treasury Client Solutions, commented on the bond issuance, stating that by leveraging capital markets, IFC enables businesses to secure financing in the local currency, reducing the risks associated with foreign currency borrowing.
“These bonds not only support private business and environmentally sustainable projects but also contribute to the diversification of Azerbaijan’s economy, strengthening its resilience and ensuring long-term growth,” Gaur said.
Theodor Kirschner, Managing Director of Capitulum Fund, emphasized the company's anticipation for further collaboration to develop the asset class.
“We value our longstanding partnership with IFC, which consistently provides us access to local interest rates in attractive emerging markets like Azerbaijan while ensuring the transparent and sustainable use of the raised funds. We look forward to further collaboration to advance our asset class and promote sustainable projects,” Kirschner added.
Since 2020, IFC has issued bonds totaling more than 189 million manat ($111.1 million) with maturities ranging from one to four years and interest rates up to 300 basis points below the government benchmark.
IFC, a member of the World Bank Group, is the largest global development institution dedicated to fostering private sector growth in emerging markets. With a presence in over 100 countries, IFC leverages its capital, expertise, and global influence to create 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 sustainable development.