Washington, DC, July 2, 2010 – The World Bank (International Bank for Reconstruction and Development, rated Aaa/AAA) and Clariden Leu AG have teamed up to bring World Bank Green Bonds to retail and institutional investors in Switzerland. This transaction gives investors in Switzerland the opportunity to support World Bank’s lending to development programs which specifically tackle climate change, while investing in the securities of an issuer with the highest credit ratings from Moody's and Standard and Poor's.
World Bank Green Bonds raise funds from fixed income investors to support World Bank loans for eligible projects that seek to mitigate climate change or help affected people adapt to it. Since 2008, the World Bank has issued an equivalent of approximately USD 1.5 billion to support these mitigation and adaptation activities through Green Bond transactions. World Bank Green Bonds are an example of the collaborative efforts between the public and private sectors to narrow the financing gap needed to address the global warming challenge.
The USD 10 million notes have a term of five years and pay a collared, floating rate. This is the first issue of World Bank Green Bonds with this type of interest rate structure. Clariden Leu AG is the sole underwriter for this transaction.
Issuer: International Bank for Reconstruction and Development (IBRD)
Amount: USD 10 million
Settlement date: July 16, 2010
Maturity date: July 16, 2015
Issue price: 101% of the nominal amount
Redemption amount: 100% of the nominal amount
Coupon Type: Floating Rate based on 3-month USD Libor
Denomination: USD 1,000
Clearing system: Euroclear/Clearstream/SIX SIS Ltd.
Lead Manager: Clariden Leu
* Please see the Final Terms for a detailed description of the Terms and Conditions of the notes
“We are seeing great interest in investments which help the global fight against climate change and we are pleased to have been able to work with the World Bank with this issue,” said Yvan Meier, Financial Engineer, Clariden Leu AG.
“We are grateful for the opportunity to work with Clariden Leu AG on this Green Bond issue in Switzerland and for the support from Swiss investors for World Bank development activities in the areas of climate change mitigation and adaptation in our member countries,” said Doris Herrera-Pol, Global Head of Capital Markets, The World Bank.
World Bank Green Bonds support World Bank-funded projects that are designed to tackle the causes and consequences of climate change in the developing world. The types of projects that may be supported by World Bank Green Bonds include alternative energy installations, funding for new technologies that reduce greenhouse gas emissions, reforestation, watershed management and flood protection. To date, the World Bank has issued the equivalent of more than USD 1.5 billion in Green Bonds. For more information on World Bank Green Bonds, please visit https://treasury.worldbank.org/greenbonds.
About the World Bank
The World Bank (International Bank for Reconstruction and Development, IBRD), rated Aaa/AAA (Moody’s/S&P), is an international organization created in 1944. It operates as a global development cooperative owned by 187 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 overriding goal is to achieve major, sustainable improvements in standards of living worldwide. It has been issuing bonds in the international capital markets for more than 60 years to fund its activities. The World Bank is one of the most recognized and innovative borrowers in the international capital markets. The World Bank designed and issued the first global bond in 1989. Information on bonds for investors is available on the World Bank Treasury website: www.worldbank.org/debtsecurities.