Washington, DC, April 28, 2015 – The subscription period for the World Bank (IBRD, Aaa/AAA) Green Growth Bond 05/2023 – a Green Bond linked to the Ethical European equity index designed for retail investors across Europe – closed last week. The subscription period lasted a total of 6 weeks, from March 10, 2015 to April 23, 2015.
This product allows investors to benefit from the growth potential of an equity index while at the same time, supporting projects financed by the World Bank that have a positive impact on climate change. The transaction closed with a total subscription amount of USD 103.275 million. There was strong appetite from investors, with the minimum issuance target of USD 15 million reached in the first week of launch.
A total of 65 different distributors within Switzerland, Luxembourg and France took part in this initiative. The product was developed in partnership with BNP Paribas Corporate and Institutional Banking.
This initiative follows the recent success of the World Bank’s first Green Growth Bond which was offered to retail investors in Belgium and Luxembourg. That transaction closed on January 7th 2015 with a total subscription amount of USD 91 million, making it the largest public offer subscription for a non-Euro denominated equity index-linked bond across Belgium and Luxembourg in 2014.
Since its first green bond launched in 2008, the World Bank has raised more than USD 8.2 billion through over 95 green bonds in 18 different currencies. 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.
Transaction Summary | |
Issuer: | World Bank (International Bank for Reconstruction and Development, IBRD) |
Issuer Rating: | Aaa (Moody’s)/AAA (S&P) |
Amount: | USD 103,275,000 |
Issue Date: | April 30, 2015 |
Maturity Date: | May 12, 2023 |
Offer Price: | 100 |
Fixed coupon: | None |
Redemption at maturity (in US dollars)1: | 100% + the Redemption Premium |
Redemption Premium: | Equal to the performance of the Underlying index (if positive). The performance of the Underlying index is calculated by comparing its closing level on the final observation date to its closing level on the initial observation date, as described in more detail in the relevant legal documentation governing the offer. A negative performance of the Underlying index will imply that the Redemption Premium will be zero. A positive performance of the Index is not assured and historic data is not necessarily a guide to future performance. |
Underlying index: | Ethical Europe Equity Index |
Initial observation date: | April 30, 2015 |
Final observation date: | April 28, 2023 |
Denomination: | USD 1,000 |
Listing: | Luxembourg Stock Exchange (regulated market) |
ISIN: | XS1201913651 |
1. Excluding fees and taxes, subject to foreign exchange risk if the investor converts the capital and the potential redemption premium that are paid to them to their own currency, and subject to the absence of default by the World Bank..
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 bonds in the international capital markets for over 60 years to fund its sustainable development activities and 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, International Financial Services and Corporate & Institutional 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 & Institutional Banking and International Financial Services 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.
