Washington, DC, November 17, 2014 – The World Bank (International Bank for Reconstruction and Development, IBRD, rated Aaa/AAA) is pleased to announce the launch of a new investment solution designed for retail investors in Belgium – the Green Growth Bond. By choosing this green bond linked to an equity index, investors can benefit from the potential growth of an equity index and, at the same time, support projects with a positive climate impact financed by the World Bank. This is the first time that such a solution has been launched by the World Bank for retail investors. The World Bank’s Green Growth Bond will be offered to investors in Belgium starting November 17th 2014, at which time all relevant information about the product and distributing banks will be available at www.GreenGrowthBond.com. The World Bank’s Green Growth Bond has been designed to deliver three key objectives for the environmentally conscious investor:
- Eco-citizenship: bond proceeds are allocated by the World Bank to support projects aimed at addressing climate change.
- Peace of mind: at maturity, investors are entitled to the repayment in US dollars of 100% of their original capital investment by the World Bank (Aaa/AAA)1.
- Return on capital: at maturity, investors can potentially earn a redemption premium that is linked to an ethical equity index, made up of 30 European companies which are selected according to sustainability criteria defined by independent organisations.
Green Bonds: Since its first green bond launched in 2008, the World Bank has raised over USD 7 billion through about 75 green bonds in 17 different currencies all over the world. All World Bank green bonds offer investors an opportunity to support environmental solutions through a bond product that benefits from the triple-A credit strength of the World Bank. World Bank green bonds support the financing of projects in member countries that meet specific criteria for low carbon and climate resilient growth, seeking to mitigate climate change or help affected people adapt to it. The types of eligible projects 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.
Equity Index: The World Bank’s Green Growth Bond, which is linked to the Ethical Europe Equity Index, has been designed to deliver long term performance. The index consists of 30 European stocks, selected for inclusion based on an analysis by Vigeo, an independent and well-established Environmental, Social and Governance (ESG) rating agency, and Forum Ethibel, an independent Belgian consulting agency that rates and audits sustainability, ethics, and social responsibility metrics of corporations. The index is owned, calculated and managed by Solactive, a global index provider.
BNP Paribas Corporate and Investment Banking has partnered with the World Bank to develop the “Green Growth Bond”, bringing to bear the bank’s traditional strengths in structured solutions and debt capital markets, and its commitment to drive progress in sustainable and responsible investment solutions.
1 Moody’s/Standard & Poor’s credit ratings as of 31 October 2014.
Transaction Summary (*):
Issuer: World Bank (International Bank for Reconstruction and Development, IBRD)
Issuer rating: Aaa/AAA
Amount: USD 15,000,000 minimum
Issue date: January 12, 2015
Maturity date: January 12, 2022
Issue price: 102%
Fixed coupon: None
Redemption at maturity: 100% (Excluding any fees or taxes or any type of charge) + the Redemption Premium
Redemption premium: Investors will be entitled to a premium linked to the positive performance of the Underlying (if any), payable on the Maturity date. The performance of the Underlying is based on the arithmetic mean of the closing levels of the Underlying on each monthly observation date as described in more detail in the relevant issuance documentation. A negative performance of the Index will imply that the Redemption Premium will be zero. A positive performance of the Underlying is not assured and historic data is not necessarily a guide to future performance.
Underlying: Ethical Europe Equity Index
Initial observation date: January 12, 2015
Monthly observation dates: 6 July 2020, 5 August 2020, 8 September 2020, 5 October 2020, 5 November 2020, 7 December 2020, 5 January 2021, 5 February 2021, 5 March 2021, 6 April 2021, 5 May 2021, 7 June 2021, 6 July 2021, 5 August 2021, 7 September 2021, 5 October 2021, 5 November 2021, 6 December 2021, 5 January 2022
Denomination: USD 100
Listing: Luxembourg Stock Exchange (regulated market)
ISIN: XS1128441711
(*) Please see the Prospectus and Final Terms for a detailed description of the Terms and Conditions of the bonds and the related risks with regard to an investment in the bonds, available at www.GreenGrowthBond.com as of the start of the offering period in Belgium.
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 and the original member of the World Bank Group. 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 to its borrowing member government clients in middle-income countries and other creditworthy countries, 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: https://treasury.worldbank.org/greenbonds.
About BNP Paribas
BNP Paribas has a presence in 75 countries with more than 180,000 employees, including more than 140,000 in Europe. It ranks highly in its three core activities: Retail Banking, Investment Solutions and Corporate & Investment Banking. In Europe, the Group has four domestic markets (Belgium, France, Italy and Luxembourg) and BNP Paribas Personal Finance is the leader in consumer lending. BNP Paribas is rolling out its integrated retail banking model across Mediterranean basin countries, in Turkey, in Eastern Europe and a large network in the western part of the United States. In its Corporate & Investment Banking and Investment Solutions activities, BNP Paribas also enjoys top positions in Europe, a strong presence in the Americas and solid and fast-growing businesses in Asia-Pacific.
About Solactive
Solactive AG is one of the key players in the indexing space. Focusing on tailor-made indices, the German multi asset class provider is developing, calculating and distributing them worldwide. As of 30th June 2014, Solactive AG calculates indices for over 160 clients in Europe, America and Asia. Approximately 25 billion USD are invested in products linked to indices calculated by the Company globally, primarily via 145 ETFs.
Solactive is a registered trade mark of Solactive AG. Solactive does not manage, sponsor, endorse, promote or sell any investment products based on the Ethical Europe Equity Index.
About Vigeo
Founded in 2002 and led by Nicole Notat, Vigeo is the leading European expert in evaluating corporate social responsibility through six domains: environment, human rights, human resources, community involvement, business behavior, and corporate governance.
Vigeo offers two types of services through two business brands:
- Vigeo rating – the way to responsible investment – offers a broad range of products and services to investors and asset managers who seek a sustainable and responsible performance of their investments on more than 3,000 issuers: companies, regions and states;
- Vigeo enterprise – the way to responsible management – works directly with organizations of all sizes from both public and private sectors, conducts global CSR audits and benchmarks, supports teams and integrates CSR/SRI criteria into business functions and strategic operations.
Vigeo Rating's research meets high quality standards and has been externally certified to the Arista standard since 2009, a quality standard for SRI research. Vigeo is present in Paris, Casablanca, Brussels, Milan, London, Tokyo and Santiago of Chile and has more than 120 employees.
About Forum Ethibel
Forum ETHIBEL is an independent association whose goal is to raise the awareness of both the general public and institutions, so that they make investments in line with the ethical values it promotes.
As an independent advisor and auditor on SRI in Europe, Forum ETHIBEL provides specific instruments and labels to support investors in their search for SRI products. Based on Vigeo data and ratings, Forum ETHIBEL draws up the Ethibel Investment Register as the basis of the label Ethibel EXCELLENCE and the indices ESI Excellence Europe and Global.
