(MENAFN- Trend News Agency)
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.
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