Washington, DC, July 13, 2011 – Today the World Bank (International Bank for Reconstruction and Development, rated Aaa/AAA) issued Euro 20 million 5-year World Bank Green Bonds.
World Bank Green Bonds support World Bank’s lending to eligible development programs that are designed to tackle the causes and consequences of climate change in the developing world. Examples of the types of eligible projects 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 over USD 2.3 billion equivalent of green bonds through 39 transactions in 15 currencies.
The lead order for this transaction was from FMO, the international development bank of the Netherlands. SEB is the sole underwriter for this transaction.
Transaction Summary
Issuer: World Bank (International Bank for Reconstruction and Development, IBRD)
Amount: EUR 20 million
Settlement date: July 13, 2011
Maturity date: July 13, 2016
Issue price: 99.696%
Coupon: 2.25% p.a.
Denomination: EUR 1,000
Clearing system: Euroclear/Clearstream
Listing: Luxembourg
Lead Manager: SEB
“Sustainability is key to FMO’s strategy. We are delighted to take part in the global environmental initiative alongside the World Bank with our treasury investments. This fits within our mission of working towards the sustainable development of the private sector in Africa, Asia, Eastern Europe and Latin America,” said Sheila Codamus-Platel, Treasury Officer, FMO.
“We are grateful for the continued investor interest we are seeing in green bonds issued by the World Bank, and for FMO’s decision to support World Bank’s development activities in the areas of climate change mitigation and adaptation in our member countries through this investment,” said Doris Herrera-Pol, Global Head of Capital Markets, The World Bank.
About FMO
FMO is the international development bank of the Netherlands. FMO invests risk capital in companies and financial institutions in developing countries. With an investment portfolio of EUR 5.3 billion, FMO is one of the largest bilateral private sector development banks worldwide. Thanks in part to its relationship with the Dutch government, FMO is able to take risks which commercial financiers are not - or not yet - prepared to take. FMO's mission: to create flourishing enterprises, which can serve as engines of sustainable growth in their countries.
About SEB
SEB is a leading Nordic financial services group. As a relationship bank, SEB in Sweden and the Baltic countries offers financial advice and a wide range of financial services. In Denmark, Finland, Norway and Germany the bank's operations have a strong focus on corporate and investment banking based on a full-service offering to corporate and institutional clients. The international nature of SEB's business is reflected in its presence in some 20 countries worldwide. On 31 March 2011, the Group's total assets amounted to SEK 2,118 billion while its assets under management totaled SEK 1,372 billion. The Group has about 17,000 employees. SEB is strategically committed to work on developing the Green Bond market and provide its Capital Markets Platform to assist clients in integrating climate investments in mainstream portfolios.
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. More information for investors is available on the World Bank Treasury website: www.worldbank.org/debtsecurities. For more information on World Bank Green Bonds, please visit https://treasury.worldbank.org/en/about/unit/treasury/ibrd/ibrd-green-bonds.
