Washington, DC, March 22, 2016 – The subscription period for the World Bank (IBRD, Aaa/AAA) Sustainable Development Bond 03/2026, which is also referred to as the USD Callable 1.75% Fixed Rate Notes due March 29, 2026 (the “Notes” or the “Bond”), closed yesterday. The subscription period lasted a total of 3 weeks, from March 1, 2016 to March 21, 2016.
The transaction closed with a total subscription amount of USD 165 million, confirming the increasing interest from Italian retail investors for high-quality products with a sustainable purpose. This World Bank Sustainable Development Bond provides investors with an opportunity to support member country efforts to end poverty and inequality across all sectors, including education, health, nutrition, and access to essential infrastructure.
Several banks distributed the product, together representing a large proportion of the Italian market. The product was developed in partnership with BNP Paribas, acting as Dealer and Banca Akros, acting as Co-Dealer.
The Bond pays a yearly coupon of 1.75% payable semi-annually and at maturity. After ten years, investors are entitled to the repayment in US dollars of 100% of their original capital investment2 by the World Bank. From March 29, 2018, and annually thereafter, the Bond can be redeemed early by the issuer at a price of 100%. The Bond will be listed on Borsa Italiana (MOT) from March 29, 2016 and BNP Paribas will act as liquidity provider.
Arunma Oteh, Vice President and Treasurer, World Bank, said: “I am extremely delighted with the warm reception from Italian retail investors for this successful World Bank Sustainable Development Bond and the message it sends. It shows that investors value investments that help secure the long-term future of our planet and protect precious resources for future generations. If we are to achieve the Sustainable Development Goals, it is imperative for each one of us to proactively search for ways to make an impact. I celebrate the Italian investors who recognized this bond as an opportunity for a high-quality investment that makes a positive difference to society.”
Pascal Fischer, Head of Global Markets, EMEA for BNP Paribas said: “The success of the World Bank’s Sustainable Development Bond in Italy is one key example of the growing demand from our clients for sustainable investments worldwide. BNP Paribas is pleased to play a major role in contributing to the growth of responsible investing and to reinforce our partnership with the World Bank.”
Summary of terms(*) | |
Issuer: | World Bank |
Issuer rating: | Aaa /AAA1 |
Maturity: | 10 years |
Issue/payment date: | March 29, 2016 |
Coupon: | 1.75% |
Coupon payment dates: | 29 March and 29 September of each year from and including September 29, 2016 to and including the maturity date, subject to early redemption |
Early redemption: | The Issuer has the right to call the Notes at 100% in whole and not in part on March 29, 2018 and annually thereafter to and excluding the maturity date. |
Maturity date: | March 29, 2026, subject to early redemption |
Offer price: | 100% of the specified denomination, i.e. US dollar 2,000 |
Listing: | MOT of Borsa Italiana |
Clearing systems: | Euroclear, Clearstream |
ISIN: | XS1365236196 |
Dealer: | BNP Paribas |
Co-Dealer: | Banca Akros S.p.A. |
(*) Nothing in this document should be construed as a solicitation or offer, legal, tax or other advice, or recommendation to engage in any transaction. The information in this document does not constitute a recommendation of the instrument referred to. It merely provides information and is not intended to be either a recommendation to acquire financial products or an offer or invitation to tender. Any offer of the Sustainable Development Bond 03/2026 will solely take place on the basis of the Prospectus, the Final Terms and related legal documentation. For a detailed description of the Terms and Conditions of the Sustainable Development Bond 03/2026 and the related risks with regard to an investment in the Bonds, please see the relevant legal documentation available at www.sustainablebond.com.
About the World Bank
The World Bank (International Bank for Reconstruction and Development, IBRD), rated Aaa/AAA1(Moody’s/S&P), is an international organization created in 1944 and the original member of the World Bank Group. It operates as a global development cooperative owned by 188 nations. It provides its members with financing, expertise and coordination services so they can achieve equitable and sustainable economic growth in their national economies and find effective solutions to pressing regional and global economic and environmental problems. The World Bank has two main goals: to end extreme poverty and promote shared prosperity. It seeks to achieve them primarily by providing loans, risk management products, and expertise on development-related disciplines to its borrowing member government clients in middle-income countries and other creditworthy countries, and by coordinating responses to regional and global challenges. It has been issuing sustainable development bonds in the international capital markets for over 60 years to fund its activities that achieve a positive impact.
Information on bonds for investors is available on the World Bank Treasury website: www.worldbank.org/debtsecurities
For more information about World Bank sustainable development bonds, see: https://treasury.worldbank.org/sustainableinvesting.
About BNP Paribas
BNP Paribas has a presence in 75 countries with more than 180,000 employees, including more than 140,000 in Europe. It ranks highly in its three core activities: Retail Banking, Investment Solutions and Corporate & Institutional Banking. In Europe, the Group has four domestic markets (Belgium, France, Italy and Luxembourg) and BNP Paribas Personal Finance is the leader in consumer lending. BNP Paribas is rolling out its integrated retail banking model across Mediterranean bas in countries, in Turkey, in Eastern Europe and a large network in the western part of the United States. In its Corporate & Institutional Banking and Investment Solutions activities, BNP Paribas also enjoys top positions in Europe, a strong presence in the Americas and solid and fast-growing businesses in Asia-Pacific.
About Banca Akros S.p.A.
Banca Akros S.p.A., the investment and private banking arm of Banca Popolare di Milano Group, has been a reference point for institutional, corporate and private investors for over 15 years. The bank’s strategy consists in identifying and supporting the needs of a clientele that can’t find the sort of solution they are looking for with retail banks. Investment banking and private banking have always been the two core businesses Banca Akros S.p.A.has specialised in. They are the founding pillars of the bank’s identity.
1) Moody’s/Standard & Poor’s rating as of the 28 February 2016.
2) Amount subject to the World Bank’s credit risk and foreign exchange risk where the investor changes the capital and coupons into euro.
