World Bank Group member, International Finance Corporation (IFC) has issued a $1bn green bond to support its climate-friendly projects in developing countries.

The bond issue was heavily subscribed and IFC made it available worldwide investors to strengthen this growing asset class.

IFC VP and treasurer Jingdong Hua remarked that the agency was ramping up its climate-related investments as the private sector can play a key role in addressing climate change.

"Through its Green Bond Program, IFC enables large-scale investors to support projects related to climate change in developing countries," added Hua.

The green bond will support projects that reduce greenhouse emissions — by rehabilitating power plants and transmission facilities, installing solar and wind power, and providing funding for new technologies that result in significant reductions in emissions.

IFC director of climate business noted, "The IFC Green Bond Program supports one of IFC’s strategic priorities to develop and promote innovative financial products that attract greater investments to support renewable energy, energy efficiency, and other climate-friendly projects."

For the year 2012, IFC’s climate-related investments totaled $1.6bn and the agency expects to double this figure to approximately $3bn by FY2015.