IFC Increases Asia-Pacific Financing to Address Climate and Economic Challenges

The International Finance Corp., part of the World Bank Group, increased its Asia-Pacific investments by 10-15% in fiscal 2024. Riccardo Puliti, the regional VP, noted a $11 billion commitment to 108 projects. This includes a $100 million package for Epic Group, a Hong Kong-based apparel manufacturer, aiding their operations in Bangladesh and India.

Puliti highlighted the urgent need to address climate change, sustainable growth, and food security in Asia. The region's heavy reliance on coal underscores the criticality of energy transition and mitigation efforts, especially in vulnerable countries like Bangladesh and Indonesia.

Attracting private sector investment remains challenging due to unclear legal and regulatory frameworks. Puliti suggests public institutions should take higher risks to set an example for private investors. He also advocates for World Bank Group collaboration with governments on reforms.

Despite financial market volatility and geopolitical uncertainties, Puliti remains optimistic about blue bonds—financial instruments aimed at promoting sustainable maritime resource use. He sees Asia as a promising market for these bonds, given the region's significant ocean plastic issue.

The IFC has already invested in blue bonds, including a $25 million subscription to Vietnam's first blue bond through SeABank. Puliti discussed the potential of blue bonds with Japanese banks during his recent visit.