Nov 12, 2024
BAKU – The Climate Investment Funds (CIF) Capital Markets Mechanism (CCMM) has announced its readiness to access the international capital markets with the listing of its bond issuance program on the London Stock Exchange. CCMM is an innovative issuer that raises private sector capital in the international capital markets to mobilize finance for climate action and sustainable development. CCMM accelerates climate funding by frontloading reflows from CIF’s Clean Technology Fund (CTF). The CIF Capital Markets Mechanism Plc was established in July 2024 and the World Bank acts as its Treasury Manager. The World Bank is also the Trustee and host of the Secretariat for the CIF.
The listing of CCMM’s bond issuance program on the London Stock Exchange concludes the design and structuring phase of CCMM, which included the appointment of BofA Securities, BNP Paribas, HSBC, and TD Securities as lead managers for the inaugural issuance and the publication of credit ratings from Fitch and Moody’s (AA+/Aa1).
Introduced at COP26, CCMM supports a wide range of CTF climate-related projects in developing countries, focusing on low-carbon technologies such as renewable energy, energy efficiency, sustainable transport, and green industry. The CTF aims to address the significant financing gap in climate action by mobilizing capital at scale and directing it towards high-impact projects which is channeled through six triple A-rated implementing multilateral development banks (MDBs) who collaborated on the design and structure of CCMM.
With USD 12 billion pledged, CIF has pioneered new ways of mobilizing climate finance to over 80 developing countries, funding first-of-a-kind solutions creating the conditions for others to follow. CIF’s country-led, agile, and inclusive business model opens new markets, incentivizes governments to make climate-smart investment decisions, and crowds in private capital. Over the last 16 years, CIF’s investments have unlocked multiple socio-economic and market benefits, supporting countries’ development goals, and contributing to transformational outcomes.
Following the listing of the bond issuance program, CCMM will pursue an inaugural bond issuance, subject to market conditions. As part of the preparation for an inaugural bond transaction, investor outreach is underway to introduce CCMM to potential investors, including CCMM's strong credit quality, climate impact, and its financial structure. CCMM is expected to attract a diverse range of global investors, promoting broad-based participation in climate financing.
Quotes
“Today’s public listing of the CIF Capital Market Mechanism is a testament to ingenuity and collaboration in the face of shared crisis. At COP29, leaders from all sectors have been challenged to rapidly ramp up climate finance to levels that can power a worldwide green transition. This is us delivering on that challenge: CCMM will mobilize private capital at scale and direct it to high-impact clean energy and clean technology investments. While this is an ambitious step forward, it is rooted in a 16-year track record of being a first mover, working with national governments, the private sector, and frontline communities to pioneer cutting-edge clean technologies and solutions paving the way for greater ambition.”
Tariye Gbadegesin - Chief Executive Officer, Climate Investment Funds
"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 mobilized is a step closer to a sustainable future for all.”
Ajay Banga – President, World Bank Group
“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.”
David Schwimmer - CEO, LSEG
“Building a low-carbon economy is not just a national priority, but a shared global responsibility—one that requires us to support developing countries in their own journeys. Canada’s leadership in the Climate Investment Funds, including our significant contributions to the Clean Technology Fund and the Accelerating Coal Transition program, underscores our commitment to a just and equitable energy future. Scaling-up climate finance from all sources, including the private sector, is critical to meeting the goals of the Paris Agreement. The CIF Capital Markets Mechanism is an exciting and innovative approach to mobilizing private capital to support the deployment of low carbon technologies in developing countries.”
The Honourable Steven Guilbeault - Minister of Environment and Climate Change, Canada
“We need to turn billions into trillions to meet the global challenge posed by climate change. Public funds are not going to be sufficient. We need innovative finance mechanisms to deliver on the Paris Agreement and SDGs. Denmark strongly welcomes the launch of the CIF Capital Market Mechanism, which will add to the mobilizing of the necessary funds to address the climate crisis and promote the green transition, jobs and incomes.”
Lars Løkke Rasmussen - Minister of Foreign Affairs and Development Cooperation, Denmark
“With this new way of financing their programs, the Climate Investment Funds are taking a concrete step towards financial innovation to meet more effectively the challenges of climate change. France, which has long worked to promote such innovations in particular in the context of the reform of the international financial architecture, is particularly pleased to have enabled the Funds to move in this direction. These new resources will enable the Clean Technology Fund to step up its efforts, in particular to accelerate the transition out of coal and the decarbonisation of industry.”
Antoine Armand – Minister for Economy, Finance, and Industry, France
“The global community can and must overcome the climate crisis together. To make this possible, economically weaker countries in particular need more financing – because the estimated costs of climate action and mitigation are high. Innovative instruments like the CIF Capital Markets Mechanism are a step in precisely the right direction and mobilize private funds to promote global transformation. This enables developing countries and emerging economies to make vital investments in climate protection and mitigation.”
Svenja Schulze - Federal Minister for Economic Cooperation and Development, Federal Republic of Germany
“The international financial architecture must be strengthened to address the growing financing needs related to the climate change agenda. Spain commends the work developed by the Clean Technology Fund and the listing of the CCMM on the London Stock Exchange as a significant step towards providing much needed stable climate finance.”
Carlos Cuerpo Caballero - Minister of Economy, Trade and Business, Spain
“Climate change is accelerating. We need more climate action to intensify the green transition. To this end, we must generate extensive new climate finance, including by using development finance catalytically to unleash private capital. I am very glad that CCMM aims to do just that.”
Benjamin Dousa - Minister for International Development Cooperation and Foreign Trade, Sweden
“Britain is back in the business of climate leadership. We’re making the UK a clean energy superpower and London the green finance capital of the world. This innovative mechanism will mobilize billions more in climate finance – which is crucial for accelerating the global clean energy transition and supporting developing countries as they adapt to a changing climate.”
Edward Miliband - Secretary of State for Energy Security and Net Zero, United Kingdom
“I strongly support the CIF Capital Markets Mechanism, a cross-MDB initiative that will advance our key priority of mobilizing more private sector finance to support the climate transition in developing countries.”
Janet Yellen - Secretary of the Treasury, United States of America
“The Dominican Republic, as co-chair of the Clean Technology Fund, is proud to participate in this historic program. We see how the articulation of efforts can lead to the best results. Here we have combined the proactivity of the recipient countries, the priority given to the issue by the donor countries involved in the matter, and the growing interest of the private sector. Together we have worked to put solutions on the table, hand in hand with the Climate Investment Funds (CIF) Secretariat. This is a clear example of how global collaboration is essential to address climate change and move towards a more sustainable future.”
Max Puig - Executive Vice president, Climate Change Council, Dominican Republic
“We congratulate the CIF for launching the CCMM, an innovative and useful financing model to boost climate resources. CCMM will enable access to capital market funding and facilitate the expansion of CTF’s operations. Welcoming the timely establishment of the CCMM during COP29, we look forward to seeing successful bond issuances, to be deployed for climate efforts of the members.”
Osman Çelik - Deputy Minister, Ministry of Treasury and Finance, Republic of Türkiye
“For Africa, the Climate Investment Funds Capital Markets Mechanism is welcome news. It will provide the much-needed financial resources to boost the continent’s clean energy transition through investments and scale up sustainable infrastructure in emerging economies. I’m pleased that the African Development Bank Group developed the initial concept note for the Climate Investment Funds Capital Markets Mechanism. The mechanism paves the way for multilateral climate funds to deploy their balance sheet credentials to unlock urgently needed climate funds, crowd in private sector capital and speed up the issuance of requisite bonds.”
Dr. Akinwumi Adesina - President, African Development Bank Group
"The CCMM will address a key ADB priority by bringing together multilateral development banks to mobilize private sector-funded climate action. Supported by a 15-year partnership between ADB and CIF, this initiative will be a game changer in funding transformative projects that support climate action and contribute to regional sustainable development and poverty alleviation.”
Fatima Yasmin - Vice-President for Sectors and Themes, Asian Development Bank
“Congratulations to the Climate Investment Funds on the establishment of its Capital Markets Mechanism. This landmark initiative is allowing an international climate fund to issue bonds in the international capital market for the first time and will help generate the necessary scale of resources needed to address the climate crises. We have been a key partner to the CIF for many years and very much look forward to scaling climate action in our Countries of Operations with the support of CCMM, jointly with our MDB partners.”
Mark Bowman - Vice-President for Policy and Partnerships, European Bank for Reconstruction and Development
“Innovation is essential to scale up MDB financing to meet global challenges and deliver development impact. The CCMM exemplifies this, offering a new way to support countries’ climate actions and sustainable development while multiplying private resource mobilization for Latin America and the Caribbean. The IDB is proud to support this effort and looks forward to deepening this pioneering CIF mechanism.”
Jordan Schwartz - Executive Vice President, InterAmerican Development Bank
“Listing on the London Stock Exchange marks a critical step for the CCMM in mobilizing private capital to accelerate climate action. For IFC, connecting CCMM investors with impactful climate projects will help unlock private finance to scale low-carbon investments in emerging and developing economies.”
Susan Lund - Vice President, Economics and Private Sector Development, IFC
“The CIF Capital Market Mechanism is a new mechanism that will mobilize significant amounts of private financing to help developing countries invest in low-carbon and climate resilient infrastructure and industry, by leveraging the CIF's existing portfolio of climate investments. We are committed to continue our close collaboration with the CIF to provide concessional financing to those countries and populations challenged most by climate change.”
Guangzhe Chen - Vice President for Infrastructure, World Bank
For more information, please contact:
Charlottegrant@cif.org / CCMMTreasuryManager@worldbank.org
Related Information:
https://find-and-update.company-information.service.gov.uk/company/1586…
