Jakarta, (ANTARA News) - IFC`s Vice President for Asia and the Pacific Nena Stoiljkovic said that the issuance of IFC`s green Komodo bond supported Indonesia in achieving an environmentally sustainable economic growth.

"The bond allows us to mobilize international funding into the Indonesia`s climate-friendly projects," Stoiljkovic said in a statement received here on Friday.

IFC intends to replicate and scale up this model to address the country`s climate challenges, Stoiljkovic remarked.

On October 8, IFC, a member of the World Bank Group, issued its inaugural Indonesian Rupiah Komodo green bond, attracting strong investor demand and raising 2 trillion IDR, the equivalent of $134 million in U.S. currency, to combat climate change.

This is the first such green Komodo offshore rupiah-denominated issuance by a multilateral development bank for investment into climate projects in Indonesia.

The strong interest from a diverse group of international investors is testament to the growing appetite for a socially responsible investment in Indonesia.

The five-year green bond, which will be listed on both the London Stock Exchange and the Singapore Stock Exchange, will support the local-currency market in Indonesia, funding the first-ever green bond issued in Indonesia by an IFC client, Bank OCBC NISP. The proceeds will finance underlying infrastructure and climate-related projects, in accordance with Green Bond Principles.

Meanwhile, IFC`s Vice President and Treasurer Jingdong Hua said this first-ever green Komodo bond issued in the Indonesian rupiah for climate investment in Indonesia is a significant milestone for IFC and for Indonesia, helping the private sector manage foreign exchange risk through local-currency financing, while growing a climate-smart business.

Since launching the Green Bond Program, IFC has raised billions of dollars for clean energy, climate-smart cities, green buildings and green finance.

As revealed in IFC`s Green Bond Impact Report released today, IFC issued 32 green bonds totaling $1.8 billion?a record green bond issuance for IFC?in the fiscal year (FY) that ended June 30, 2018.

The number of projects supported by IFC`s Green Bond Program has surged to 52 projects in FY18, from 32 projects in FY17, an all-time high number and volume of green bond-financed projects.

The portfolio is anticipated to reduce greenhouse gas emissions annually by 6.3 million metric tons of carbon-dioxide equivalent, an increase from 2.2 million metric tons in FY17.

At the close of FY18, IFC green bonds had supported cumulatively 177 investment projects. IFC issued its first green bond in 2010 and as of the end of FY18 has issued a total of $7.6 billion across 111 green bonds in 13 currencies and helped client banks in the Philippines, Indonesia, and other countries do the same.

Reporting by Azis Kurmala
Editing by Yoseph Haryadi

Reporter: Azis Kurmala
Editor: Suharto
Copyright © ANTARA 2018