Tokyo, December 17, 2015 – The World Bank (International Bank for Reconstruction and Development, IBRD, rated Aaa/AAA), and Nomura Securities Co., Ltd. announced the launch of three World Bank Sustainable Development Bonds designed for Japanese retail investors. These bonds, denominated in Turkish Lira (TRY), Brazilian Real (BRL), and Indian Rupee (INR), were offered to investors from December 10 and will settle to Japanese investors on December 17.
The World Bank raises funds in the international capital markets to finance sustainable development projects in developing countries focusing on poverty reduction and inclusive growth across a range of sectors, including among others: agriculture and food security; education; energy; finance, trade and industry; healthcare and social services; law and governance; transport; and water and sanitation.
The World Bank’s mission is to end extreme poverty within a generation and to promote shared prosperity in a way that is sustainable over time and across generations. This requires promoting environmental, social and fiscal sustainability.
Nomura has been promoting sustainable and responsible impact (SRI) investing as an investment strategy for Japanese retail investors. Through the distribution of World Bank Sustainable Development Bonds, Nomura is increasing awareness in Japan about how individuals can achieve attractive and safe returns on their investments while also participating in providing solutions to social and environmental issues that affect communities in developing countries and around the world. Since the beginning of the year, Nomura has sold a total of over JPY 56 billion (USD eq. 450 million) in World Bank Sustainable Development Bonds, making it this product’s largest distributor in the Uridashi market.
“World Bank projects support communities by promoting inclusive economic and environmental sustainability. We welcome the participation of the Japanese retail market in supporting projects that positively impact these communities in areas such as health, education, clean water, and transportation,” said Yoshiyuki Arima, Lead Financial Officer & Representative of Japan, World Bank Treasury.
“World Bank Sustainable Development Bonds are a popular SRI product in the bond market in Japan. We are pleased that many retail investors appreciate the value of investing in products focused on achieving positive social impact. As a brokerage house that conducts financial intermediation, Nomura would like to continue to assist the sustainable development of developing countries,” said Teruhiko Ishida, Head of Debt Capital Markets, Nomura Securities Co., Ltd.
Summary of Terms* | |||
Issuer | World Bank (International Bank for Reconstruction and Development, IBRD) | ||
Issuer Rating | Aaa/AAA | ||
Launch & Pricing Date | December 8, 2015 | December 9, 2016 | |
Offering Period | December 10, 2010 to December 16, 2016 | ||
Type | Euro BRL Fixed Rate Note (all amounts payable in JPY) | Euro TRY Fixed Rate Note | Euro INR Fixed Rate (all amounts payable in JPY) |
Amount | BRL 134.73 | TRY 111.65 million | INR 738.1 million |
Denomination | BRL 10,000 | TRY 10,000 | INR 100,000 |
Settlement Date to Japanese Investors | December 17, 2015 | ||
Coupon | 10.72% payable in JPY | 9.58% | 5.66% payable in JPY |
Coupon Payment Dates | June 13 and December 13 in each year | June 16 and December 16 in each year | |
Maturity Date | December 13, 2018 | December 16, 2020 | |
Issue Price | 99.97% | 99.98% | |
Settlement | Euroclear and Clearstream | ||
Underwriter | Nomura International plc | ||
| * Please see the Prospectus and Final Terms for a detailed description of the Terms and Conditions of the bonds and the related risks, available through the distributor. | |||
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
About Nomura
Nomura is an Asia-based financial services group with an integrated global network spanning over 30 countries. By connecting markets East and West, Nomura services the needs of individuals, institutions, corporates and governments through its three business divisions: Retail, Asset Management, and Wholesale (Global Markets and Investment Banking). Founded in 1925, the firm is built on a tradition of disciplined entrepreneurship, serving clients with creative solutions and considered thought leadership.
