Jakarta—The Climate Investment Funds (CIF) Capital Markets Mechanism (CCMM) has officially launched its bond issuance program on the London Stock Exchange, marking a significant step in mobilising private sector capital for climate action, the Fund announced on its website on Tuesday, November 12. This innovative financing initiative, designed to accelerate funding for climate-related projects in developing countries, is now poised to debut in the international capital markets.
The CCMM leverages reflow from CIF’s Clean Technology Fund (CTF) to frontload capital for investments in low-carbon technologies such as renewable energy, energy efficiency, sustainable transport, and green industry. Established in July 2024, CCMM is backed by the World Bank, which acts as its Treasury Manager and Trustee.
“(This) public listing of the CIF Capital Market Mechanism is a testament to ingenuity and collaboration in the face of a shared crisis,” said CIF’s CEO, Tariye Gbadegesin. “CCMM will mobilise private capital at scale and direct it to high-impact clean energy and clean technology investments, paving the way for a global green transition.”
The program’s launch follows the completion of its design and structuring phase, which included securing AA+/Aa1 credit ratings from Fitch and Moody’s and appointing BofA Securities, BNP Paribas, HSBC, and TD Securities as lead managers.
Introduced at COP26, CCMM aims to address the climate financing gap by channelling resources through six top-rated multilateral development banks. With USD 12 billion pledged, CIF has funded transformative projects in over 80 developing countries, driving socio-economic and environmental benefits.
Investor outreach is underway, with the inaugural bond issuance planned subject to market conditions. The program is expected to attract diverse global investors, reinforcing the role of private capital in advancing sustainable development goals.
David Schwimmer, CEO of LSEG, highlighted the launch’s significance, noting that the listing aligns with LSEG’s commitment to sustainable growth. “At London Stock Exchange Group (LSEG), we are dedicated to facilitating sustainable economic development and capital investment in clean technology and green initiatives. The listing of the Climate Investment Funds Capital Markets Mechanism on the London Stock Exchange, supported by the World Bank as its Treasury Manager along with its other partners, is a significant milestone for the market. This innovative financing tool aligns with our strategy to enable sustainable growth through capital raising from global investors,” he said.
World Bank President Ajay Banga said, “Success will not be measured solely by the funds we raise, but by the real-world impact those funds have on the ground. Every investment made, every bond issued, every dollar mobilised is a step closer to a sustainable future for all.” (nsh)
