CIF Capital Markets Mechanism (CCMM) Makes Historic Debut with Inaugural $500 Million Bond

• Debut CCMM bond which was over 6 times oversubscribed
• Marks the launch of a new era in climate finance

WASHINGTON, D.C. – The Climate Investment Funds (CIF) Capital Markets Mechanism (CCMM), rated by Fitch and Moody’s (AA+/Aa1) today 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.  

Final pricing was fixed at +36.6 basis points over the 3-year U.S. Treasury, which resulted in a re-offer semi-annual yield of 4.838% and re-offer price of 99.757% for the bonds. The bond will be listed on the International Securities Market of the London Stock Exchange.

The orderbook was of the highest quality, presenting an allocation challenge. The distribution is:

Investor Distribution

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.

Tariye Gbadegesin – CEO, Climate Investment Funds
“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.”

CCMM Treasury Manager and CIF Trustee

Anshula Kant – Managing Director and Chief Financial Officer, World Bank Group
“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.”

Lead Managers

Bernie Mensah – President of International, Bank of America 
“Congratulations to the CCMM team and the World Bank, acting in its capacity as Treasury Manager, on the successful execution of CCMM's inaugural bond issue. The proceeds raised from the mobilization of private sector finance will enable the Clean Technology Fund to build out its efforts in supporting clean energy advancements in developing countries. Bank of America is honored to be a part of this important collaboration.”

Alain Papiasse – Chairman, BNP Paribas Corporate and Institutional Banking (CIB)
“This is a groundbreaking step for the Clean Technology Fund – BNP Paribas is delighted to have supported the Climate Investment Funds (CIFs) Capital Markets Mechanism (CCMM) in bringing its first transaction to the market and expanding its financing capacity for clean technologies in developing countries. There has been a strong response from investors, who consider CCMM to be pure play green/sustainable ESG investment offering high-quality fixed income investment opportunities. The World Bank and the CCMM team should be commended for their excellent work – from the legal exercise to the investor marketing activity. It is very gratifying to see this transaction become a reality. Congratulations!”

Sir Danny Alexander – CEO of Infrastructure Finance and Sustainability, HSBC
“It was a privilege for HSBC to introduce the Climate Investment Funds (CIF) Capital Markets Mechanism (CCMM) into debt capital markets. The successful inaugural issuance marks an important step in CIF’s journey. CCMM is utilizing capital markets to mobilize private sector capital to fund energy transitions, specifically financing clean technology projects in low- and middle-income countries. HSBC is extremely proud to have acted as Joint Lead Manager on this debut transaction, utilizing our global network to help drive investment into this important mandate.”

Sharon Kim – CEO, TD Bank Europe
"TD Securities is proud to lead the debut bond issue for the Climate Investment Funds Capital Markets Mechanism (CCMM). This landmark transaction is an important milestone, and we congratulate the Climate Investment Funds and World Bank as Treasury Manager on a successful entry to capital markets."

MDB Implementing Partners

Kevin Kariuki - Vice President for Power, Energy, Climate and Green Growth, African Development Bank
"Today marks a significant milestone in global commitment to addressing climate change and fostering sustainable development. The proceeds of the first CCMM bond issuance will enable the Multilateral Development Banks to continue driving transformation in clean technologies across the World. For Africa, this bond issuance opens up critical opportunities to accelerate the adoption of innovative clean technologies across a wide range of sectors."

Bruno Carrasco - Director General, Climate Change and Sustainable Development Department, Asian Development Bank
"ADB congratulates the Climate Investment Funds on the successful inaugural bond issuance by the CIF Capital Markets Mechanism. This milestone exemplifies the power of collaboration between multilateral development banks and the private sector in mobilizing innovative financing solutions for climate action. The proceeds from this bond will add significant leverage to ADB's commitment to invest at least $100 billion in climate finance by 2030, supporting transformative projects that advance sustainable development and poverty alleviation across Asia and the Pacific."

Mark Bowman - Vice-President for Policy and Partnerships, European Bank for Reconstruction and Development
“CCMM is a remarkable achievement, and we are very pleased to see a first bond issuance at the London Stock Exchange. We look forward to accelerating our climate efforts with the support of CCMM and in close collaboration with our partner MDBs.”

Juan Pablo Bonilla - Sector Manager, Climate Change and Sustainable Development, InterAmerican Development Bank
"The CCMM’s market debut as an issuer highlights the vital role of innovation in expanding MDB financing to tackle global challenges and deliver meaningful development impact. The IDB remains committed to supporting this effort and is eager to strengthen its partnership with this pioneering CIF mechanism.”

Mohamed Gouled - Vice President of Industries, International Finance Corporation
“Congratulations on the CIF Capital Markets Mechanism’s successful debut bond issuance, a milestone in mobilizing urgently needed private capital for climate action. IFC is pleased to support the issuance and be an implementing partner of the CIF as we mobilize private capital toward accelerating an inclusive transition to low-carbon, resilient growth.”

Guangzhe Chen - Vice President for Infrastructure, World Bank
“We are excited to partner with CIF on this historic bond issuance. Together we have a strong track record in clean energy finance, with investments designed to open up new markets, demonstrate innovative technologies, expand access to clean and reliable electricity, and support just energy transitions. With new funding raised through capital markets, we will continue to invest in a livable planet for all.”

Transaction Summary

This press release is not an offer for sale of securities of the CIF Capital Markets Mechanism, also known as “CCMM”.  Any offering of CCMM securities is subject to restrictions under the laws of several countries and will take place solely on the basis of the relevant offering documentation including, but not limited to, (1) the information memorandum in respect of the CCMM debt issuance programme and (2) the final terms in respect to each issuance under the CCMM debt issuance programme, in each case prepared by CCMM or on behalf of CCMM.  CCMM securities may not be offered or sold except in compliance with all such laws. 

Contact
For more information, please contact:
Charlottegrant [at] cif.org / CCMMTreasury [at] worldbank.org

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Press release amended to reflect an update in the quote provided by TD Securities and title of ADB’s Bruno Carrasco.