CIF’s CCMM bond for financing climate action raises $500m; six times over-subscribed
The Climate Investment Funds (CIF)’s Capital Markets Mechanism (CCMM), rated by Fitch and Moody’s (AA+/Aa1), ...
CIF’s CCMM bond for financing climate action raises $500m; six times over-subscribed
The Climate Investment Funds (CIF)’s Capital Markets Mechanism (CCMM), rated by Fitch and Moody’s (AA+/Aa1), made its market debut as an innovative issuer focused on mobilizing finance for climate action and sustainable development. Its inaugural bond raised $500 million on the back of an orderbook totaling more than $3 billion from investors around the world.
The 3-year bond is the first issuance under CCMM’s borrowing program, following the announcement of its listing in November 2024 at COP29.
CCMM accelerates climate funding by frontloading future reflows from CIF’s Clean Technology Fund (CTF) funded operations. The World Bank acts as CCMM’s Treasury Manager, as well as Trustee and host of the Secretariat for the CIF.
The bond will be listed on the International Securities Market of the London Stock Exchange.
Introduced at COP26, CCMM supports CTF projects in developing countries, focusing on low-carbon technologies such as renewable energy, energy efficiency, sustainable transport, green supply chains, and industry decarbonization.
CTF aims to address the significant financing gap for energy transitions by mobilizing capital at scale and directing it towards high-impact programs. CIF funding is exclusively channeled through six triple A-rated multilateral development banks (MDBs) who act as implementing entities of the CTF.
“Today is a historic moment for climate finance. The inaugural CCMM bond issue has exceeded all expectations, with our order book over six times over-subscribed. This is an enormous vote of confidence and a sign of the keen market interest in backing high-quality clean energy projects. These bonds will multiply the funds available for scaling-up clean technology and infrastructure in developing countries – not in ten years, but now, when it’s most critically needed,” said Tariye Gbadegesin – CEO, Climate Investment Funds.
“We are grateful for the global support from investors to successfully launch this inaugural bond. By helping mobilize private capital, this ambitious program will contribute financing to clean energy projects and investments in emerging economies, building a sustainable future for all,” said Anshula Kant – Managing Director and Chief Financial Officer, World Bank Group.
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