IFC is to attempt to accelerate the growth of the $33bn global green-loan market by offering a green loan product for businesses in developing countries to obtain green financing.

In a first for a global development institution, IFC has begun offering its investment clients the option of structuring loans in accordance with the Green Loan Principles. The principles, which are modelled on the Green Bond Principles, specify how loan proceeds should be used and how projects should be selected in order to qualify for green-loan status. This can help businesses attract additional financing and enhance their reputation among shareholders, clients, and communities.

In accordance with the Green Loan Principles, IFC clients would be required to establish a management system to track, manage, and report on the use of proceeds of a loan for dedicated green projects and have it verified by a third party.

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