IFC, a member of the World Bank Group, has made a strategic investment in CRDB Bank Plc’s inaugural green bond in Tanzania, marking a significant move to boost financing for climate-friendly development projects in the country.
The investment, equivalent to $20 million in Tanzanian shillings, represents 29.3 per cent of the bond, which was oversubscribed by 429 per cent, raising $68.3 million.
The proceeds from the green bond will support initiatives such as climate-smart agriculture, water and forestry projects, renewable energy, and green building projects.
IFC’s backing includes a performance-based incentive for the UK-IFC Market Accelerator Program to support greening affordable housing in Tanzania. At least 40 per cent of IFC’s bond investment will be dedicated to supporting green buildings.
Tanzania aims to mobilize private sector resources to meet its $19.2 billion climate targets by 2030. The green bond is the first tranche of CRDB Bank’s $300 million Medium Term Note program under its Green, Social, and Sustainability Bond Framework.