Washington, D.C., December 4, 2018—The World Bank (International Bank for Reconstruction and Development, IBRD, rated Aaa/AAA) today launched Sustainable Development Bonds linked to the Solactive Human Capital World MV Index. The five-year bonds will be denominated in U.S. dollars and offered to Italian retail investors.
Proceeds of the bonds will support the financing of World Bank activities aimed at eradicating poverty and promoting shared prosperity. The issuance highlights the importance of human capital, a key driver of economic growth.
The bond is linked to the Solactive Human Capital World MV Index, which selects companies based on two key factors: fair work (including diversity, responsible labor relations, fair remuneration, and safe working conditions) and societal development (including human rights, fair taxes, and responsible supply chain).
Following the placement phase, from 3rd to 20th December, the bonds will be listed on the Mercato Obbligazionario Telematico (MOT) of Borsa Italiana, where they will be traded on a continuous basis. BNP Paribas will provide liquidity as market maker. The minimum purchase amount is USD 2,000.
Michele Montefiori, Senior Financial Officer, World Bank Treasury, said: “We are pleased to launch Sustainable Development Bonds to highlight the importance of investing in human capital. The bonds are part of the World Bank’s strategy of developing new solutions that offer a sound investment proposition while also creating social value. We hope these bonds will expand our strong partnership with Italian investors as we strive to create a better future for all.”
Claudia Vacanti, Head of Products Department of Banca Generali, said: "We have decided to join this initiative able to align financial and sustainability goals, also because sustainability is a crucial topic for Banca Generali, increasingly gaining traction among our clients".
Priscilla Todaro, Head of External Distribution Sales, BNP Paribas Global Markets, said: "We are very satisfied with this issuance, as we have managed to connect return to human capital development. The potential return of 4% per annum, combined with the safety provided by a triple-A issuer such as the World Bank, makes this bond an attractive product for investors.”
The World Bank raises funds in the international capital markets to support the financing of sustainable development projects in borrowing member countries. These projects focus on poverty reduction and equitable and shared growth across a range of sectors including education, healthcare, agriculture, food security, and essential infrastructure. World Bank Sustainable Development Bonds provide investors with an opportunity to support member countries in achieving their development goals.
The World Bank recently announced the Human Capital Project, an ambitious effort to accelerate more and better investments in people, to create a world in which all children arrive in school well-nourished and ready to learn; can expect to learn in the classroom; and are able to enter the job market as healthy, skilled and productive adults.
Further information about the product can be found on the website www.obbligazionisostenibili.org.
Summary of terms (*)
| |
Issuer: | World Bank (International Bank for Reconstruction and Development, IBRD) |
Issuer rating: | Aaa /AAA |
Maturity: | 5 years |
Trade date: | December 21, 2018 |
Issuance date: | December 28, 2018 |
Maturity date: | December 28, 2023 |
Index: | Solactive Human Capital World MV Index |
Coupon: | First year: a fixed annual coupon of 4.00% Second year to maturity: the product of the specified denomination multiplied by 4.00% multiplied by (1 + T), provided that the index level on the relevant index observation date is greater than or equal to the index level on the trade date. Where “T” refers to the number of interest payment dates, if any, from the last interest payment date on which an interest payment was made. |
Offer price (minimum purchase amount) / specified denomination: | USD 2,000 |
Listing: | MOT of Borsa Italiana |
ISIN: | XS19178802855 |
Dealer: | BNP Paribas |
* This press release is not an offer for sale of Notes of the International Bank for Reconstruction and Development ("IBRD"), also known in the capital markets as "World Bank". Any offering of the Notes will be made only by means of a prospectus containing detailed information that will made available through BNP Paribas 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.
About the World Bank
The World Bank (International Bank for Reconstruction and Development, IBRD), rated Aaa/AAA[1] (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 189 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 70 years to fund its activities that achieve a positive impact.
Information on World Bank 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/cmd/htm/sustainable_investing.html
About BNP Paribas
BNP Paribas is a leading bank in Europe with an international reach. It has a presence in 75 countries, with more than 189,000 employees, including more than 146,000 in Europe. The Group has key positions in its three main activities: Domestic Markets and International Financial Services (whose retail-banking networks and financial services are covered by Retail Banking & Services) and Corporate & Institutional Banking, which serves two client franchises: corporate clients and institutional investors. The Group helps all its clients (individuals, community associations, entrepreneurs, SMEs, corporate and institutional clients) to realise their projects through solutions spanning financing, investment, savings and protection insurance. 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 in Mediterranean countries, in Turkey, in Eastern Europe and a large network in the western part of the United States. In its Corporate & Institutional Banking and International Financial Services activities, BNP Paribas also enjoys top positions in Europe, a strong presence in the Americas as well as a solid and fast-growing business in Asia-Pacific. For further information visit www.bnpparibas.com.
[1] Standard & Poor’s/Moody’s as of July 2018.
