Washington, DC, January 8, 2015 – The subscription period for the World Bank (IBRD, Aaa/AAA) Green Growth Bond – the first Green Bond linked to an equity index designed for retail investors in Belgium and Luxembourg – closed last week. The subscription period lasted a total of 6 weeks, from November 17, 2014 to December 29, 2014 with a one day reopening on January 7, 2015 to satisfy investor demand.
There was strong appetite from investors, with the minimum issuance target of USD 15 million reached in the first 3 days of launch.
The transaction closed with a total subscription amount of USD 91 million, making this the largest public offer subscription for a non-Euro denominated equity index-linked bond across Belgium and Luxembourg in 2014.
A total of 10 banks distributed the product, together representing a large proportion of the Belgian market, including BNP Paribas Fortis, Fintro, Puilaetco Dewaay, Belfius, ABN Amro, KBC, CBC, Bolero, Banque Degroof and Fortunéo Banque.
The product was developed in partnership with BNP Paribas Corporate & Institutional Banking.
“This offering marks the first time equity index-linked World Bank Green Bonds are accessible to retail investors and we are thrilled that the bonds met with such success. The transaction highlights the World Bank’s ongoing appeal to investors across the board, offering an opportunity to support environmental solutions while maintaining a long-term performance potential,” said Doris Herrera-Pol, Director and Head of Global Capital Markets at the World Bank.
“The appeal of this product in Belgium and Luxembourg points to continued trends in the responsible investing space. BNP Paribas is committed to driving progress in sustainable and responsible investment solutions, and was proud to partner with the World Bank to deliver this pioneering solution to retail investors,” said Renaud Meary, Global Head of Structured Equity, BNP Paribas Corporate and Institutional Banking.
Transaction Summary (*):
Issuer: World Bank (International Bank for Reconstruction and Development, IBRD)
Issuer rating: Aaa/AAA
Amount: USD 91,042,100
Issue date: 12 January 2015
Maturity date: 12 January 2022
Offer price: 102% of Specified Denomination
Fixed Coupon: None
Redemption at maturity: 100% of Specified Denomination (Excluding any fees or taxes or any type of charge) + the Redemption Premium
Redemption Premium: Equal to the performance of the Underlying (if positive). The performance of the Underlying is based on the arithmetic mean of its closing levels on each monthly observation date as described in more detail in the Final Terms. A negative performance of the Underlying 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: 12 January 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
Specified Denomination: USD 100
Listing: Luxembourg Stock Exchange (regulated market)
(*) 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.
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: http://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.