Climate: first Ifad bond arrives, it will help small farmers

(ANSA) – ROME, JUN 08 – The International Fund for Agricultural Development (IFAD) today announced its first issue of bonds for sustainable development in collaboration with Folksam, a leading company in the management of insurance and pension funds in Sweden, with a $ 100 million bond investment. This was announced by a press release from the fond.

Capital market entry creates conditions for IFAD to invest more in food security, rural development and economic growth at a time when the war in Ukraine is rocketing food and fertilizer prices worldwide. and energy, exposing further millions of inhabitants of rural areas, already tested by the COVID-19 pandemic, to the risk of suffering from hunger and finding themselves in conditions of poverty.

IFAD is the first Fund in the United Nations system and the only specialized UN institution and agency, other than the World Bank Group, to enter the capital market, following the completion in 2021 of its evaluation process by of the rating companies Standard & Poor’s and Fitch, with the assignment by both of them of an AA + level.

According to Natalia Toschi, Head of Funding at IFAD’s Department of Financial Management, “the funds obtained from IFAD’s first bond issue will increase the Fund’s ability to help smallholder farmers adapt to climate change, access supply chains of distribution and markets, to further diversify the production of food, thus stimulating rural economies and contributing directly to the achievement of many Sustainable Development Goals, in particular to the elimination of hunger and poverty “. “This first issue is a milestone for IFAD and represents an opportunity to enhance its capacity to raise funds to strengthen the resilience of rural populations,” said Katherine Meighan, director of the Legal Department and interim head of the Finance Department. of IFAD “. (HANDLE).

Source: Ansa

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