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IDA Debuts in Norwegian Krone with NOK 2 Billion 5-year Sustainable Development Bond

IDA made its debut in Norwegian krone with a 5-year benchmark bond that raised NOK 2 billion (October 2021). DNB Markets and Skandinaviska Enskilda Banken (SEB) were the joint lead managers for the transaction.

IDA bond proceeds support the financing of projects and programs in eligible IDA countries as they advance the SDGs, including those which are helping support member countries as they respond to the human and economic impacts of COVID-19.

Anne Beathe Tvinnereim, Norway’s Minister of International Development, emphasized that IDA is among the most important channels for Norwegian development assistance to the least developed countries, and that Norway will get a high leverage factor via IDA’s smart business model. 

Anniken Huitfeldt, Norway’s Minister of Foreign Affairs, welcomed IDA’s debut in the Norwegian bond market, and echoed the aspiration of the World Bank to issue more IDA bonds in NOK.

Jingdong Hua, Vice President and Treasurer, World Bank, said: “We are very pleased to make IDA’s debut in Norwegian krone and grateful for continued investor support for IDA’s development mission. Support for IDA remains critical as IDA countries face dual crises – the COVID-19 pandemic and climate change. Access to capital markets allows IDA to scale up development impact and programs alongside donor support to address these challenges and build more resilient and inclusive communities.”

Margrethe Ouren, DNB Markets, Director FICC, said: “It has been a great privilege for DNB Markets to act as a lead manager on the IDA inaugural Sustainable Development Bond denominated in NOK. The Sustainable Development Bond format is an opportunity to support IDA’s work on green and social projects, programs, and activities in IDA’s member countries, which we find especially crucial as the world continues to fight the effects of the pandemic. We congratulate IDA on this outstanding inaugural NOK transaction, which was very well received by the Scandinavian investor community.”

Christopher Flensborg, Head of Climate and Sustainable Finance, SEB, said: “For SEB, it's a great privilege to work with the World Bank Treasury team again, this time for IDA’s first bond in NOK. IDA has given Scandinavian investors the opportunity through their investment to support low-income countries amidst the ongoing challenges presented by the Covid pandemic. We are encouraged to see issuers like IDA taking a leading role in accessing the capital markets to tackle these challenges and bring us a step closer to global recovery.”

Louis Nordstrand, Liquidity Manager Sparebanken Møre, said: “Sparebanken Møre is proud to invest in this inaugural NOK denominated bond from IDA. IDA’s efforts over many years to end extreme poverty and achieve positive development impact around the world are of high value to us. Moreover, furthering the growth of the Norwegian sustainable bond market through this Sustainable Development Bond issue is important to Sparebanken Møre’s green and social ambitions going forward.”

The following investors participated in the transaction: DNB Treasury, Danske Bank Asset Management, Sparebanken 1 SR Bank, Sparebanken Møre, and Affirmative Investment Management.


Sources: IDA Debuts in Norwegian Krone with NOK 2 Billion 5-year Sustainable Development Bond - Press ReleaseVerdensbankens fond for de fattigste inn på det norske obligasjonsmarkedet