On 22 January 2025, the Climate Investment Funds (CIF) Capital Markets Mechanism (CCMM) successfully closed its inaugural USD500 million bond issuance, making it the world’s first multilateral climate fund to use capital markets to raise climate funding.
CCMM is a platform designed to mobilise private sector capital by distributing to investors looking to invest in the climate transition in emerging markets. The three-year bond is the first issuance under CCMM’s debt issuance programme, following the announcement of its listing in November 2024 at COP29.
CCMM is able to raise additional resources to fund renewable energy, climate resilience, and sustainable development projects. This approach aims to bridge the climate finance gap by scaling investments in low-carbon and climate-resilient initiatives.
This new bond will raise funds for Clean Technology Fund (CTF) projects. CCMM supports CTF in scaling up clean technologies in low- and middle-income countries and addressing the climate finance gap in emerging markets by mobilising and directing capital to high-impact programmes.
BNP Paribas was a joint lead manager on the deal which was six times oversubscribed.
Fred Zorzi, Global Head of Primary Markets, BNP Paribas, commented: “This transaction highlights the transformative role capital markets can play in accelerating the sustainable transition in developing countries. It has been a privilege to contribute to such an innovative bond, drawing on our experience to help deliver impactful climate finance where it is most needed.”
❝ It has been a privilege to contribute to such an innovative bond, drawing on our experience to help deliver impactful climate finance where it is most needed. ❞
Unlocking Private Capital
CIF is one of the world’s largest multilateral funds, with a mission to scale climate solutions in developing countries. It works closely with multilateral development finance institutions around the world on tackling the climate crisis and key sustainable development challenges.
Multilateral Development Banks (MDBs) are increasingly turning to public-private partnerships as a critical strategy for mobilising the substantial funding required for climate action and sustainable development.
Tariye Gbadegesin, CEO, Climate Investment Funds, said in a press release: “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.”
By blending public sector funding with private sector investment, these partnerships leverage the policy frameworks, guarantees, and concessional financing provided by MDBs to reduce barriers for private investors, enabling more ambitious and large-scale projects. This collaborative approach reflects a growing recognition that achieving global climate and development goals requires the combined strengths of public and private stakeholders.
*This article is for informational purposes and is not an offer for the sale of any securities in the United States or in any other jurisdiction.
Supporting our clients to meet their sustainability ambitions
BNP Paribas continues to be at the forefront of innovative funding solutions to help clients meet their sustainability ambitions, including working in close partnership with multilateral development banks to unlock funds through private capital.
BNP Paribas has pioneered several blended finance projects to support climate action and nature-based solutions in developing countries, through consortiums with partners across the public and private sector. This ultimately addresses the just transition, and helps communities who may face financial exclusion as blended finance solutions enable access to institutional investor capital at a local and inter-regional level.
According to Bloomberg, BNP Paribas was the leading provider of bonds and loans for environmentally friendly projects in 2024 with a total amount of USD32.56 billion.
