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World Bank EUR-denominated sustainable development bond highlights the importance of water

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  • World Bank EUR-denominated sustainable development bond highlights the importance of water

About the entity

The World Bank
The World Bank Group has two goals, to end extreme poverty and promote shared prosperity in a sustainable way
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Themes

The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) launched a Sustainable Development Bond to raise awareness for the critical role that water and ocean resources play in development around the world.

This EUR denominated 10-year forward Euro 10-year CMS rate linked bond was priced on April 24, 2019 and raised EUR 200,000,000.

HSBC was the sole lead manager of the bond. 

This bond shows investor interest in preserving freshwater and marine ecosystems that are crucial for our habitats, drinking water and climate. We are pleased to see that investors are looking for ways to support the Sustainable Development Goals - including through our bonds,” said Heike Reichelt, Head of World Bank’s Investor Relations and New Products.

“The World Bank’s work on the blue economy is critical for the protection and sustainable use of marine and coastal resources.  We’re delighted to have worked on this important transaction,” said Farnam Bidgoli, Head of Sustainable Bonds DCM EMEA, HSBC.

With annual issuances between US$40-US$50 billion, all World Bank bonds support the financing of programs that support the Sustainable Development Goals. World Bank bonds are aligned with the sustainability bond guidelines published by the International Capital Markets Association (ICMA). The World Bank is also a member of the Executive Committee of the Green Bond Principles. A key priority for the World Bank’s engagement in the capital markets is to build strategic partnerships with investors to raise awareness for the role of private sector financing in sustainable development.

Transaction Summary*

Issuer

World Bank (International Bank for Reconstruction and Development, IBRD)

Issuer Rating

Aaa/AAA

Amount

EUR 200,000,000

Settlement Date

May 10, 2019

Maturity Date

May 10, 2039

Issue Price

100%

Coupon 

CMS10y10y – 1.274% (as defined in the applicable Final Terms) per annum

Coupon Payment Dates

May 10 of each year, from and including May 10, 2020 to and including the Maturity Date

Listing

Luxembourg Stock Exchange

Denomination

EUR 100,000

Clearing System

Euroclear

Lead Manager

HSBC

ISIN

XS1989647943

 

 

* This press release is not an offer for sale of bonds of the International Bank for Reconstruction and Development ("IBRD"), also known in the capital markets as "World Bank". Any offering of the bonds will be made only by means of a prospectus containing detailed information that will made available through HSBC and is subject to restrictions under the laws of several countries. Securities may not be offered or sold except in compliance with all such laws.

Net proceeds of the bonds are not committed or earmarked for lending to, or financing of, any particular projects or programs and returns on the bonds are not linked to the performance of any particular project or program.

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