Washington, DC, February 17, 2015 – The World Bank (International Bank for Reconstruction and Development, IBRD, rated Aaa/AAA) announced a EUR 30 million 30-year fixed rate World Bank Green Bond that was issued in response to demand from Zurich Insurance Group (Zurich). This is the World Bank’s longest maturity fixed rate Green Bond to date. Morgan Stanley was 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 support the financing of projects in its member countries that meet specific criteria for low carbon development and resilient investments. The types of eligible projects include alternative energy installations, funding for new technologies that reduce greenhouse gas emissions, reforestation, watershed management and flood protection that build climate resilience among others.
"As an insurance company we frequently invest into maturities of 30 years and longer. Practically, this means investing for the next generation. What better way could we find than working with the World Bank on a customised solution to both outperform our liabilities and tackle climate change?", said Dr. Michael Leinwand, CIO Zurich Insurance Group, Germany.
“Zurich is playing an important role as an institutional investor both promoting and supporting the development of the green bond market. We are delighted that we were able to provide a customized solution that meets their investment objectives as well as supporting projects that will help our clients address the challenges of climate change”, said Doris Herrera-Pol, Director and Global Head of Capital Markets at the World Bank.
“Morgan Stanley worked closely with both the World Bank and Zurich to align both the issuer and investor’s interest in supporting the green bond market. With this EUR 30-year green transaction the World Bank have simultaneously taken advantage of attractive financing in long-dated EURs and combined that with Zurich’s continued interest in procuring green bond investments. The World Bank in partnership with Zurich continues to pioneer the Green Bond market; this is now the longest dated fixed rate EUR green bond outstanding and the second longest dated green bond issued so far”, said Andrew Salvoni, Head of Green Bond Syndicate at Morgan Stanley.
Transaction Summary:
Issuer: World Bank (International Bank for Reconstruction and Development, IBRD)
Issuer rating: Aaa/AAA
Amount: EUR 30,000,000
Settlement date: February 25, 2015
Maturity date: February 25, 2045
Issue price: 100%
Coupon: 1.0325%
Denomination: EUR 100,000
Sole Lead Manager: Morgan Stanley
ISIN: XS1192988738
Use of Proceeds: Green Bond, as described in the Final Terms
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 Group has two main goals: to end extreme poverty and promote shared prosperity. The World Bank (IBRD) 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 Zurich Insurance Group
Zurich Insurance Group (Zurich) is a leading multi-line insurer that serves its customers in global and local markets. With more than 55,000 employees, it provides a wide range of general insurance and life insurance products and services. Zurich’s customers include individuals, small businesses, and mid-sized and large companies, including multinational corporations, in more than 170 countries. The Group is headquartered in Zurich, Switzerland, where it was founded in 1872. The holding company, Zurich Insurance Group Ltd (ZURN), is listed on the SIX Swiss Exchange and has a level I American Depositary Receipt (ZURVY) program, which is traded over-the-counter on OTCQX.
Corporate responsibility is a key part of Zurich’s strategy and supports its mission to help its customers understand and protect themselves from risk. Zurich is focusing on its strengths as a business, and on key enablers of success – actions it needs to take to achieve its strategic objectives. Zurich thinks about corporate responsibility in the same way, focusing on seven areas that either make use of its insurance, risk management and investment expertise, or are enablers of Zurich's success.
Zurich participates in the Dow Jones Sustainability Indices (DJSI), FTSE4Good and CDP.
Zurich has been a signatory of the UN Global Compact since 2011 and is committed to making the Global Compact and its principles part of Zurich’s strategy, culture and day-to-day operations.
About Morgan Stanley
Morgan Stanley (NYSE: MS) is a leading global financial services firm providing investment banking, securities, investment management and wealth management services. With offices in more than 43 countries, the Firm's employees serve clients worldwide including corporations, governments, institutions and individuals.
