London Stock Exchange welcomes first-of-its-kind CIF Capital Markets Mechanism to the International Securities Market

The Climate Investment Funds (CIF), one of the largest multilateral climate funds in the world, celebrates the listing of CIF Capital Markets Mechanism’s (CCMM) bond issuance program on the London Stock Exchange. With its inaugural bond six times oversubscribed and an orderbook totaling over $3 billion, CCMM marks the beginning of a new era in climate finance.

Established in 2008 to mobilise climate finance at scale for developing countries, CIF has to date supported over 400 projects in 80+ countries worldwide. Through large-scale, low-cost, long-term financing it has successfully built track records in unproven markets and crowded in finance for pioneering climate solutions, with over $12 billion pledged in total. CIF’s flagship Clean Technology Fund (CTF) has mobilised an impressive $11 in additional finance for every dollar invested.

The team celebrating on the balcony at LSEG during the welcome ceremony.

All eyes on the CIF Capital Markets Mechanism

Watch the behind the scenes story of how partnership is paving the way for a new era in climate action.

[Music playing in the background.][To drive investment in global energy transition programs][And fund climate action in developing countries][The Climate Investment Funds (CIF) was founded in 2008][Tariye Gbadegesin, CEO, Climate Investment Funds] The funding required for the energy transitionannually is two point four trillion dollars. It's a massive number.It's so big that you can't even quite contemplate it.So while the numbers seem almost unaddressableif you look from the bottom up and you sayhow can we work with what we have,bringing in different pools of capital in to the systemand potentially be able to get to these numbers that we sodesperately need.And that's why we're so excited about the CIF capital markets mechanism today.[CIF Capital Markets Mechanism (CCMM) mobilizes private finance][The CCMM borrowing program is now listed on the London Stock Exchange][The World Bank acts as CCMM's Treasury manager][Adrea Dore, Global Head of Funding, World Bank]CCMM was established with the main purpose of really raising funds now.And the idea is to bring in private sector money tocomplement the public sector funding.[Tariye Gbadegesin, CEO, Climate Investment Funds] The reality is that the capital stack that can pull the amountof money in to meet and even beat that two point fourtrillion happens because of partnership.It happens because of the partnership between donorfunding, private capital, capital markets,multilateral systems.So to see that sheer amount of work and passion that havebeen put into a project deliver at the highest levelwas remarkable.We had an order book of over three billion dollars.Six times oversubscription of the transaction.What this mechanism is doing is showing the power ofpartnership and collaborationfor the integration of capital. To meet these massive fundingtargets that are required. Because no one is going to be ableto do this alone.It wasn't about just a first deal.We need to come back to the market.This is just a start of a journey.[Produced in partnership with CLIMATE INVESTMENT FUNDS | London Stock Exchange] [Find out more at http://londonstockexchange.com/raise-finance/debt]

A world first for climate finance

With CCMM, CIF has for the first time used the strength of its balance sheet to access private capital through global financial markets. Rated Aa1 by Moody’s and AA+ by Fitch, the CCMM is a groundbreaking new initiative set to unlock new levels of private funds for clean energy projects around the world.

By issuing fixed income securities, CCMM enables the front-loading of reflows from CIF’s CTF long-term loan portfolio. The funds raised through CCMM bonds will enable high-impact clean energy infrastructure in developing countries, including renewable energy generation and integration, industry decarbonisation and clean technology supply chains.

The World Bank acts as CCMM’s Treasury Manager, CIF’s Trustee and host of the CIF Secretariat. BofA Securities, BNP Paribas, HSBC und TD Securities have been selected as Lead Managers for CCMM’s inaugural transaction.

“Today we celebrate the first time a multilateral climate fund has raised investment capital directly from international capital markets. CCMM’s strong credit quality and robust financial structure have attracted investors from around the world who recognise the enormous potential of low-carbon technologies. This historic entry on the London Stock Exchange builds on CIF’s 16-year track record of success, freeing up urgently-needed funds to drive the global energy system transformation founded on clean energy and clean technology.”

Tariye Gbadegesin
CEO of Climate Investment Funds

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