Stockholm, November 14, 2008 – The World Bank today announced an increase of its inaugural green bonds to respond to additional investor demand. The United Nations Joint Staff Pension Fund joins other key investors in support of the green bonds, including Länsförsäkringar, Skandia, AP3 (Third Swedish National Pension Fund), AP2 (Second Swedish National Pension Fund). The World Bank green bonds raise funds for projects seeking to mitigate climate change or help affected people adapt to it.
The World Bank green bonds are denominated in Swedish kronor (SEK) for a total amount of SEK 2.7 billion and have a maturity of six years. SEB is the sole lead manager for the increase. Credit Suisse International is a senior co-manager and Landesbank Baden-Württemberg is a co-manager for the increase.
“We are very pleased about the additional interest this new product has generated,” said Doris Herrera-Pol, director and global head of capital markets at the Bank. “We are very grateful to SEB for their initiative and partnership and to all the investors for their support of climate change investments in our client countries through their investments.”
Summary Terms
Issuer: International Bank for Reconstruction and Development (IBRD)
Rating: Aaa/AAA
Increase Amount: SEK *375 million
Total Amount: SEK 2.7 billion
Settlement date: November 24, 2008
Maturity date: November 12, 2014
Increase Issue price: 102,069%
Redemption: 100%
Coupon: 3.5%
Denomination: SEK 10,000.00 and integral multiples thereof
Listing: Luxembourg
Clearing system: Euroclear
Sole Lead Manager: SEB
ISIN: XS0398811959
*On February 6, 2009, IBRD agreed to increase the principal amount of the bond with a third tranche in the amount of SEK 150 million with an issue price of 103.885% plus 91 days accrued interest (settlement date: February 13, 2009). On November 29, 2011, IBRD agreed to increase the principal amount of the bond with a fourth tranche in the amount of SEK 300 million with an issue price of 105.905% (settlement date: December 13, 2011). On December 13, 2011, IBRD agreed to further increase the principal amount of the bond with a fifth tranche in the amount of SEK 200 million with an issue price of 105.738% (settlement date: December 20, 2011).The new total outstanding principal amount is SEK 3.350 billion.
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 SEB, the sole underwriter of the notes, 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.
SEB is a North European financial group serving some 400,000 corporate customers and institutions and five million private individuals. SEB offers universal banking services in Sweden, Germany and the Baltic countries - Estonia, Latvia and Lithuania. It also has local presence in the other Nordic countries, Poland, Ukraine and Russia and a global presence through its international network in another ten countries. On 30 September 2008, the Group's total assets amounted to SEK 2,416bn (~EUR 237bn) while its assets under management totalled SEK 1,244bn (~EUR 122bn). The Group has about 22,000 employees.
The World Bank is a global development cooperative owned by its member countries. Its purpose is to help its members achieve equitable and sustainable economic growth in their economies and to find solutions to regional and global problems in economic development and environmental sustainability, all with a view to reducing poverty and improving standards of living. The International Bank for Reconstruction and Development (IBRD), rated Aaa/AAA (Moody’s/S&P) is owned by 185 countries. It is the oldest and largest entity in the World Bank Group and provides its members with financing, risk management products, and other financing services, as well as specialized expertise and strategic and convening services requested by its member countries. To fund this activity, IBRD has been issuing debt securities in the international capital markets for 60 years. The World Bank is one of the most recognized and innovative borrowers in the international capital markets. More information about the World Bank and its activities in the capital markets is available on the web at: www.worldbank.org/debtsecurities.
