Washington DC, May 31, 2016 -The World Bank (International Bank for Reconstruction and Development or “IBRD”, rating Aaa/AAA1) is pleased to announce the issuance of the Sustainable Development Bond 06/2026, which is also referred to as the USD Fixed Rate to Floating Rate Notes with Minimum and Maximum Interest Rate due June 28, 2026 (the “Notes” or the “Bond”). The Bond is being offered to retail investors in Italy and combines investors’ financial objectives with their social and environmental sustainability goals, since the World Bank finances projects across the world to support economic development that is socially and environmentally sustainable.
The World Bank’s mission is to end extreme poverty within a generation and to promote shared prosperity in such a way as to be sustainable over time and across generations. This requires promoting environmental, social and fiscal sustainability.
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 education, healthcare, agriculture and food security, and essential infrastructure.
The Sustainable Development Bond 06/2026 will be offered to retail investors from May 30th, 2016 to June 20th, 2016, except in the case of early closing under the conditions set out in the Final Terms, and it will be listed on the MOT of Borsa Italiana. The Bond pays an annual gross coupon at a rate equal to 2.35% per annum for the first year. Thereafter, the bond pays at a floating rate per annum equal to the 3-Month USD LIBOR, provided that such floating rate will not be less than the minimum interest rate of 0.00% per annum or greater than the maximum interest rate of 2.35% per annum. At maturity, after ten years, investors are entitled to the repayment in US dollars of 100% of their original capital2 investment by the World Bank. Further information about the product and the distributing banks can be found on the website www.sustainablebond.com.
In this issuance, the World Bank partnered with BNP Paribas, acting as Dealer, and Banca Akros S.p.A., acting as Co-Dealer, to promote socially responsible and sustainable investments in the Italian retail space.
Summary of terms (*) | |
Issuer: | World Bank (International Bank for Reconstruction and Development, IBRD) |
Issuer rating: | Aaa/AAA1 |
Maturity: | 10 years |
Subscription period: | May 30th, 2016 to June 20th, 2016, subject to early closing under the conditions set out in the Final Terms |
Issue date: | June 28, 2016 |
Coupons: | The Bond pays an annual gross coupon at a rate equal to 2.35% per annum for the first year. Thereafter, the Bond pays at a floating rate per annum equal to the 3-MonthUSD LIBRO, provided that such floating rate will not be less than the minimum interest rate of 0.00% per annum or greater than the maximum interest rate of 2.35% per annum |
Fixed coupon payment date: | June 28, 2017 |
Floating coupon payment date: | June 28th of each year from and including June 28th, 2018 to and including the maturity date |
Maturity date: | June 28, 2026 |
Offer price: | 100% of the specified denomination, i.e. USD 2,000 |
Listing: | MOT of Borsa Italiana |
Clearing systems: | Euroclear, Clearstream |
ISIN: | XS1410230806 |
Dealer: | BNP Paribas |
Co-Dealer: | Banca Akros S.p.A. |
(*) 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 Sustainable Development Bond 06/2026 will solely take place on the basis of the Prospectus, the Final Terms and related legal documentation. For a detailed description of the Terms and Conditions of the Sustainable Development Bond 06/2026 and the related risks with regard to an investment in the Bonds, please see the relevant legal documentation available at www.sustainablebond.com as of the start of the subscription period.
About the World Bank
The World Bank (International Bank for Reconstruction and Development, IBRD), rated Aaa/AAA1 (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 189 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 World Bank bonds for investors is available on the World Bank Treasury website:
www.worldbank.org/debtsecurities
For more information about World Bank sustainable development bonds, see: https://treasury.worldbank.org/sustainableinvesting.
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 bas in 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 Banca Akros S.p.A.
Banca Akros S.p.A., the investment and private banking arm of Banca Popolare di Milano Group, has been a reference point for institutional, corporate and private investors for over 15 years. The bank’s strategy consists in identifying and supporting the needs of a clientele that can’t find the sort of solution they are looking for with retail banks. Investment banking and private banking have always been the two core businesses Banca Akros S.p.A.has specialised in. They are the founding pillars of the bank’s identity.
1) Moody’s/Standard & Poor’s rating as May 30th 2016.
2) Amount subject to the World Bank’s credit risk and foreign exchange risk where the investor changes the capital and coupons into euro.
