Washington, DC, September 17, 2014 – Today, the World Bank (International Bank for Reconstruction and Development, IBRD, rated Aaa/AAA) priced a USD 250 million green bond. The 2-year fixed rate green bond was issued in response to demand from the California State Treasurer’s Office in furtherance of California’s climate change mitigation policies, making this the fourth World Bank Green Bond for this investor. BofA Merrill Lynch is the sole lead manager for this transaction.
World Bank Green Bonds offer an opportunity for investors to support environmental solutions through a high grade fixed income investment. World Bank Green Bonds benefit from the triple-A credit strength of the World Bank and provide comparable returns to other World Bank bonds. World Bank Green Bonds raise funds for projects seeking to mitigate climate change or help affected people adapt to it. Examples of the types of projects supported by World Bank Green Bonds include renewable energy installations, energy efficiency projects, and new technologies in waste management and agriculture that reduce greenhouse gas emissions and help finance the transition to a low carbon economy. They also include financing for forest and watershed management and infrastructure to prevent climate-related flood damage and build climate resilience.
“These investments make sense for the environment and California taxpayers. The return for our pooled money account is outstanding, and we’re financing projects that help make a difference in the fight against global warming,”said Bill Lockyer, Treasurer for the State of California.
“We appreciate the California State Treasurer’s Office’s continued interest in World Bank Green Bonds with this latest deal. They were the World Bank’s first USD investor back in 2009 when we issued our first USD green bond. Now with over USD 1 billion invested in green bonds, they have been instrumental in helping grow the green bond market,” said Doris Herrera-Pol, Director and Global Head of Capital Markets at the World Bank.
“This is another great step forward for the World Bank’s Green Bond program. The fact that investors are returning again and again to the product clearly demonstrates the continued appeal of World Bank Green Bonds“, said Suzanne Buchta, Head of Green Debt Capital Markets Americas at Bank of America Merrill Lynch.
Transaction Summary:
Issuer: World Bank (International Bank for Reconstruction and Development, IBRD)
Issuer rating: Aaa/AAA
Amount: USD 250,000,000
Settlement date: September 23, 2014
Maturity date: September 23, 2016
Issue price: 100%
Coupon: 0.650%, semiannual
Denomination: USD 1,000
Listing: Luxembourg Stock Exchange
Clearing system: DTC, Euroclear or Clearstream
Sole Lead Manager: BofA Merrill Lynch
ISIN: US45905UQE72
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 World Bank has two main goals: to end extreme poverty and promote shared prosperity. It seeks to achieve them primarily by providing loans, risk management products, and expertise on development-related disciplines and by coordinating responses to regional and global challenges. It has been issuing sustainable development bonds in the international capital markets for over 60 years to fund its activities that achieve a positive impact.
Information on bonds for investors is available on the World Bank Treasury website: (www.worldbank.org/debtsecurities).
For more information about World Bank Green Bonds, see: http://treasury.worldbank.org/greenbonds.
