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.
