Tokyo, Japan, May 14, 2014 – Today, the World Bank (International Bank for Reconstruction and Development, IBRD, rated Aaa/AAA), and Nomura, Asia’s global investment bank, finalized the terms of secondary distribution of World Bank Green Bonds for Japanese retail investors. The notes are denominated in Brazilian Real (Issue size: BRL465.5 million) and Turkish Lira (Issue size: TRY335.5 million) and have a 4-year tenor each.
The World Bank has now issued a total of over USD 6 billion equivalent in 64 green bonds denominated in 17 different currencies.
The World Bank uses the proceeds from Green Bonds to support projects that address the challenges of climate change. World Bank Green Bonds support its lending to eligible development programs that are designed to address the challenges of climate change.
Since the development of the green bond product in 2008 and its introduction to Japanese investors in 2010, World Bank Green Bonds have been recognized as catalysts for the growing market of green bonds and play a crucial role in expanding the market in Japan and globally.
Examples of the types of projects supported by World Bank Green Bonds include renewable energy installations, energy efficiency projects, new technologies in waste management and agriculture that reduce greenhouse gas emissions and help finance the transition to a low carbon economy, as well as financing for forest and watershed management, and infrastructure to prevent climate-related flood damage and build climate resilience. A sampling of expected project results includes – over 165,000 tons of carbon dioxide equivalent emission reduction benefits per year in Belarus, and 800,000 tons per year in China, reducing vulnerability to climate-related flooding and water scarcity flood events for about 500,000 farmer households in Indonesia, and producing 6MWhs of electricity out of a landfill in Jordan.
Nomura has been promoting financial products for sustainable growth, which are intended not only to make a return of investment but also to solve social and environmental problems. Through the sale of World Bank Green Bonds, Nomura serves as a bridge to investors who wish to contribute to society through their investments and support climate-friendly projects.
The World Bank and Nomura will continue to work together to further promote the development of the green bond market in Japan and mobilize capital to finance green bond - eligible projects and raise awareness for climate challenges among Japanese retail investors.
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 188 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 over 60 years to fund its activities. Information on bonds for investors is available on the World Bank Treasury website: (www.worldbank.org/debtsecurities).