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.