IFC publishes Green Bond Issuance Manual for Financial Institutions

The International Finance Corporation (IFC), a member of the World Bank Group, through its Green Bond Technical Assistance Program (GB-TAP), has launched a new Manual that offers a detailed step-by-step guide on how financial institutions (FIs) in Latin America and the Caribbean (LAC) can prepare for a successful issuance of green bonds. The Manual is structured in four sections:

• Section 1 presents an introduction and describes key terms, definitions, principles and guidance.

• Section 2 provides an overview of the market.

• Section 3 serves as a step-by-step manual, breaking down the key tasks that FIs must follow to prepare for a green bond. Includes illustrative case studies based on interviews with FI issuers in LAC. According to the authors, the green bond issuance process requires five fundamental steps: i) prepare for a green bond; ii) draft the green bond framework (including essential components: use of funds, project evolution and selection, fund management, and reporting); iii) hire an external reviewer; iv) issue the green bond; and v) report impact and allocation, and verify.

• Section 4 presents a summary, checklists and recommendations for green bond issuance.