IFC BEST Bond Fund

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The project involves IFC sponsoring the Build-Back-Better Emerging Markets Social, Sustainability, and Sustainability-linked Transaction Bond Fund (the “Fund”) with a target size of US$1 - 2 billion, managed by Amundi Asset Management (“Amundi” or “the Asset Manager”). The Fund will mobilize international investor funding for investments in social, sustainability, sustainability-linked and green bonds issued by emerging market real sector firms, financial institutions, projects, and sub-sovereigns, where the relevant transactions support COVID-19 relief efforts and/or promote an inclusive and resilient recovery from the pandemic while at the same time consolidating market standards for these nascent asset classes. The Fund will have a capital structure that transforms risk associated with a portfolio of mostly sub-investment grade emerging market bonds into a senior tranche characterized by risk that is well in investment grade territory and a subordinated tranche which provides credit-enhancement for the latter. The project is expected to be supported by IDA19 Private Sector Window Blended Finance Facility as described in the Blended Finance Section.