IFAD Surpasses US$1 Billion in Sustainable Bonds to Boost Rural Development

The International Fund for Agricultural Development (IFAD) announced that it has exceeded the landmark of US$1 billion in sustainable bond issuances, following its twelfth bond issuance in September 2025. This achievement comes just three years after IFAD entered the international capital markets with its inaugural issuance in June 2022, signaling a strong appetite among global investors for financing linked to rural development and food security.

A Milestone for Financing Rural Transformation

Initially, IFAD raised US$646 million by the end of 2024, aiming to reach 12 million rural people. Now, with the US$1 billion milestone, the Fund is positioned to impact millions more across its 90 member countries, helping vulnerable populations improve food security, diversify production, access new technologies, and strengthen resilience to climate change.

“This milestone highlights the success of IFAD in the ecosystem of highly rated issuers,” said Diane Menville, Associate Vice-President of the Financial Operations Department and Chief Financial Officer at IFAD. “The sustainable bonds serve our mission to build prosperous, sustainable, and inclusive rural economies. They act as levers to mobilize resources for transforming agriculture and food systems. It is more relevant than ever. Investors operating on financial markets can make a very tangible contribution to the lives of millions of people around the globe.”

Bond Issuances Across Markets and Currencies

Since 2022, IFAD has issued twelve sustainable bonds through private placements to institutional investors, including pension funds, asset managers, and central banks. These issuances spanned five countries across Europe, Africa, and Asia, and were denominated in four major currencies: US dollars, euros, Swedish kronor, and Australian dollars.

The bonds directly finance rural development projects that contribute to 16 of the 17 UN Sustainable Development Goals (SDGs), with a particular focus on ending hunger, improving gender equality, and building climate resilience.

Proven Development Impact

According to the 2025 IFAD Development Effectiveness Report, projects funded during the IFAD12 replenishment cycle (2022–2024) demonstrated strong results:

• 34% average increase in rural incomes among project beneficiaries.

• 35% increase in productive capacity, through better farming practices and access to modern tools.

• 34% improved access to markets, thanks to infrastructure investments and inclusive financial systems.

These outcomes underscore the tangible impact of mobilizing private capital for rural transformation.

A Unique Role Among UN Agencies

IFAD remains the only United Nations fund and the only specialized UN agency outside of the World Bank Group to issue sustainable bonds on capital markets. With a strong AA+ credit rating from both S&P and Fitch, IFAD has positioned itself as a trusted issuer, combining financial credibility with a humanitarian mission.

“This landmark also shows how IFAD is assiduously working to channel more private funding to vulnerable populations to turbocharge development and address the global challenges of our times,” added Menville.

Leveraging Every Dollar for Greater Impact

Since its foundation in 1977, IFAD has maintained a strong record of mobilizing co-financing. For every US$1 of donor funding, the Fund has attracted US$6 in investment from governments, multilateral institutions, and private sector partners. This leveraging capacity has been crucial in extending the reach of rural development programmes, particularly in fragile and food-insecure regions.

Global Context: Financing for Development

The achievement aligns with international efforts to close the global development financing gap. The Sevilla Declaration, adopted by UN Member States at the Fourth Financing for Development Conference in July 2025, reaffirmed the urgency of mobilizing private investment at speed and scale. With an estimated US$4 billion shortfall between current resources and development needs, innovative financing instruments such as sustainable bonds are seen as pivotal in stimulating growth, addressing poverty and hunger, and strengthening resilience to climate change.

Looking Ahead

IFAD’s success in tapping capital markets not only ensures a steady flow of resources to the rural poor but also demonstrates how finance can be re-engineered as a tool for inclusion, sustainability, and resilience. By bridging the worlds of finance and development, IFAD is helping create a global ecosystem where investors and vulnerable communities are connected through shared value.

As climate change, inequality, and food insecurity intensify, IFAD’s sustainable bond programme signals how innovative financing solutions can transform global agricultural systems and secure a more sustainable future for rural communities worldwide.