Washington, DC, May 18, 2015 – The World Bank is pleased to announce the launch of a new investment solution designed for retail investors in Italy: the Green Growth Bond 07/2023. By choosing this green bond linked to an equity index, investors can benefit from the potential growth of the equity market and, at the same time, support the financing by the World Bank of projects with a positive climate impact. This is the first time that such a bond product has been launched by the World Bank for retail investors in Italy.
The World Bank’s Green Growth Bond 07/2023 will be offered to investors in Italy starting May 18, 2015, 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 used by the World Bank to support the financing of 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: the bond pays a fixed coupon at the end of the first and second year and thereafter a variable coupon linked to the potential growth of the “Ethical Europe Equity Index”. The objective of the index is to obtain solid performance over the long term.
Green Bonds: Since its first green bond launched in 2008, the World Bank has raised over USD 8 billion through about 95 green bonds in 18 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 07/2023 is linked to the Ethical Europe Equity Index. The Index has been designed to deliver long term performance and 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 Institutional Banking has partnered with the World Bank to develop the Green Growth Bond 07/2023, bringing to bear the BNP’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 30 April 2015.
Transaction Summary | |
Issuer: | World Bank (International Bank for Reconstruction and Development, IBRD) |
Issuer rating: | Aaa/AAA |
Currency: | USD |
Specified denomination: | USD 2,000 |
Minimum lot: | USD 2,000 |
Aggregate nominal amount: | Up to USD 150,000,000 |
Offer period: | From May 18, 2015 to June 12, 2015, subject to any early closing or extension of the Offer Period as described in the Final Terms. |
Trade date: | June 15, 2015 |
Issue date: | June 29, 2015 |
Final observation date: | June 15, 2023, subject to postponement in the event such Trading Day is a Disrupted Day as defined in the Final Terms. |
Maturity date: | July 5, 2023 |
Issue price: | 100% of the Specified Denomination for each Note |
Offer price: | the Issue Price |
Rate of interest for the fixed coupons: | 1.75% payable annually in arrear |
Interest payment dates for the fixed coupons: | June 29, 2016 and June 29, 2017 |
Fixed coupon amount: | USD 35.00 per Calculation Amount |
Underlying index: | Ethical Europe Equity Index (Bloomberg Code: SOLEEE) |
Index sponsor: | Solactive AG |
Index Linked Interest Amount: | If no Amendment Event (as defined in the Final Terms) has occurred on or prior to the Final Observation Date, the Index Linked Interest Amount, calculated per Calculation Amount, shall be payable on the Maturity Date and will be an amount in USD calculated by the Calculation Agent in accordance with the following: The product of USD 2,000 multiplied by the greater of (i) the Average Index Return and (ii) zero (0) If an Amendment Event has occurred on or prior to the Final Observation Date, no Index Linked Interest Amount shall be payable. Where: “Average Index Return” means the quotient, expressed as a percentage, as calculated by the Calculation Agent, equal to (i) the Average Index Level (Sf) minus the Initial Index Level (S0) divided by (ii) the Initial Index Level (S0). “Closing Level” on any Trading Day means the official closing level of the Index or any Successor Index published by the Index Sponsor at the Scheduled Closing Time as determined by the Calculation Agent. “Index” means the Ethical Europe Equity Index. “Sf” or “Average Index Level”, means the arithmetic mean (rounded to the nearest four (4) decimal places, 0.00005 rounded upwards) of the Closing Levels (as defined above) of the Index on each Sf Observation Date n, as calculated by the Calculation Agent. “Sf Observation Date n” means June 15, 2016 (n=1), June 15, 2017 (n=2), June 15, 2018 (n=3), June 17, 2019 (n=4), June 15, 2020 (n=5), June 15, 2021 (n=6), June 15, 2022 (n=7) and June 15, 2023 (n=8) (the “Final Observation Date”) (each a “Scheduled Sf Observation Date”), each such Scheduled Sf Observation Date subject to postponement in the event such Trading Day is a Disrupted Day as defined in the Final Terms. “S0” or “Initial Index Level”, means the Closing Level (as defined above) of the Index on the Initial Observation Date as calculated by the Calculation Agent. “Initial Observation Date” means the Trade Date (the “Scheduled Initial Observation Date”), subject to postponement in the event such Trading Day is a Disrupted Day as defined in the Final Terms. |
Redemption at maturity: | 100% |
Listing: | Application will be made by the Dealer for the Notes to be admitted to listing and to trading on the Mercato Telematico delle Obbligazioni (MOT), EuroMOT segment, organised and managed by Borsa Italiana S.p.A. (regulated market) |
ISIN: | XS1233613188 |
About the World Bank(*) Nothing in this document should be construed as a solicitation or offer, legal, tax or other advice, or recommendation to engage in any transaction. The information in this document does not constitute a recommendation of the instrument referred to. It merely provides information and is not intended to be either a recommendation to acquire financial products or an offer or invitation to tender. Any offer of the Green Growth Bond 07/2023 will solely take place on the basis of the Prospectus, the Final Terms and related legal documentation.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.
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 & 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 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 agency 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.
