The International Finance Corporation (IFC), a member of the World Bank Group, has issued a SEK 2 billion ($182 billion) green bond to finance biodiversity and ecosystem conservation projects in emerging markets. Managed by SEB, a northern European financial services group, the five-year bond seeks to channel private capital into biodiversity protection while supporting sustainable economic growth.
The proceeds will fund initiatives such as BTG Pactual Timberland Investment Group’s reforestation strategy in Latin America and BBVA Colombia’s biodiversity bond to regenerate natural forests. The initiative aligns with the Global Biodiversity Framework and highlights the importance of private-sector collaboration to achieve ambitious global sustainability goals.
“This issuance marks IFC’s second green bond dedicated to biodiversity, reinforcing our leadership in developing this critical market. By mobilising private capital for biodiversity projects, we are demonstrating how financial innovation can address sustainability challenges while driving economic growth,” said Tom Ceusters, IFC Director for Treasury Capital Markets and Investments.
The bond responds to the discussions at COP16 on Biodiversity held in Cali, Colombia, earlier this year, where biodiversity finance emerged as a key focus. The conference emphasised unlocking private capital to meet global biodiversity objectives.
“COP16 highlighted the importance of private sector collaboration to deliver on biodiversity goals. This transaction is an example of how to turn these discussions into action,” said Ben Powell, Head of Sustainability, Fixed Income at SEB.
Swedish state pension fund AP7 was a key investor in the transaction. “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.
