Washington, DC, December 12, 2016 – The World Bank (International Bank for Reconstruction and Development or “IBRD”, rating Aaa/AAA) is pleased to announce that it has teamed up with BNP Paribas to promote the Sustainable Development Goals (SDGs) through an investment solution being developed for institutional and retail investors around the world.
The aim of the initiative is to launch a program of equity index-linked World Bank bonds to allow investors to support and benefit from the global ambition set by the United Nations 2030 Agenda for sustainable development and the Sustainable Development Goals. The performance of the bonds will be linked to the performance of the Solactive Sustainable Development Goals World Index, which consists of eligible companies, based on Vigeo Eiris’ Equitics research, which maps the SDGs against the included companies’ products, services and behaviors.
The SDGs are a set of 17 interlinked goals established to guide international cooperation to achieve sustainable development, end poverty, build peace and tackle climate change. They were adopted by United Nations member countries in September 2015 and require active participation from governments, corporations and investors in all countries. The global goals promote clean water and sanitation, health, sustainable industry and infrastructure, affordable and clean energy, education, gender equality and much more. They are designed to help every individual and every community harness the benefits of development through peace, partnership, prosperity, people and planet.
“The United Nations Secretary-General recently launched a Financial Innovation Platform (FIP) to facilitate private sector engagement with the 17 Sustainable Development Goals. This new partnership by the World Bank and BNP Paribas is exactly the kind of initiative that the platform seeks to encourage,” said David Nabarro, Special Advisor on the 2030 agenda, Executive Office of the Secretary-General, United Nations.
“Achieving the Sustainable Development Goals will require increased collaboration from public sector, private sector, and individuals. The World Bank’s twin goals – eliminating extreme poverty and boosting shared prosperity – are aligned with the SDGs. By buying World Bank bonds, investors have the opportunity to support companies in a way that supports sustainable development,” said Arunma Oteh, Vice President and Treasurer, World Bank.
The new product will allow investors to contribute to the financing of sustainable development projects through the use of proceeds of the World Bank bonds and to benefit from the performance of the companies in the SDG index. The initiative will also raise awareness among the financial community of the various roles the private sector can play in supporting the achievement of the SDGs nationally and internationally. For example, investors can align their investment strategies to the SDG framework, banks can design innovative products supporting corporates aligned with the SDGs, and index providers can filter companies based on their contribution to the goals.
The initiative also highlights the World Bank’s overall sustainable development mandate and focus on working with its member countries to achieve a positive development impact for all projects. To achieve its twin goals to eliminate poverty and boost prosperity the World Bank is positioned to use financing, robust data and innovative products to help countries grow, invest and insure for the future.
“We are proud to be part of this initiative with the World Bank in support of the Sustainable Development Goals. This effort is in direct response to the UN Secretary-General’s launch of a Financial Innovation Platform (FIP) that calls for innovations and new financial models in support of the SDGs. Through this innovative program, we can help our clients meet their increasing need to align financial objectives with global sustainability objectives. Sustainable finance is one of the key pillars of our business and this partnership around the global goals is an important new development for us in this space,” said Olivier Osty, Executive Head of Global Markets, BNP Paribas.
“Solactive has been very active in the development of indices that meet the needs of an increasing number of ESG-conscious investors. With the Sustainable Development Goals Index series, Solactive is providing the basis for investment products that mirror the UN’s SDGs. As such, our contribution to the World Bank-BNP Paribas equity-linked bonds represents an important milestone for Solactive,” said Steffen Scheuble, CEO of Solactive AG.
“We are extremely pleased to be part of this initiative promoting investments in support of projects driving sustainable growth. This equity linked World Bank bonds program is a smart and secured solution for investors and a milestone on the road to supporting the SDGs,” said Nicole Notat, CEO at Vigeo Eiris.
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. 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 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. The World Bank 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.
About BNP Paribas
BNP Paribas is a leading bank in Europe with an international reach. It has a presence in 75 countries, with more than 189,000 employees, including more than 146,000 in Europe. The Group has key positions in its three main activities: Domestic Markets and International Financial Services (whose retail-banking networks and financial services are covered by Retail Banking & Services) and Corporate & Institutional Banking, which serves two client franchises: corporate clients and institutional investors. The Group helps all its clients (individuals, community associations, entrepreneurs, SMEs, corporate and institutional clients) to realise their projects through solutions spanning financing, investment, savings and protection insurance. 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 in Mediterranean 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 as well as a solid and fast-growing business in Asia-Pacific.
About Solactive
Solactive AG is an innovative index provider that focuses on the development, calculation and distribution of tailor-made indices over all asset classes. As of 31st October 2016, Solactive AG served approximately 300 clients in Europe, America and Asia, with approximately USD 100 billion invested in products linked to indices calculated by the Company globally, primarily via 220 Exchange Traded Funds from a number of well-known providers. Solactive AG was established in 2007 and is headquartered in Frankfurt.
About Vigeo Eiris
Vigeo Eiris is a global provider of environmental, social and governance (ESG) research to investors and public and private corporates. Vigeo Eiris offers two types of services through separate business units
- Vigeo Eiris rating, offers a large range of products and services designed for all kind of investors and covering all sustainable and ethical investment practices.
- Vigeo Eiris enterprise works with organizations of all sizes, from all sectors, public and private, to support them in the integration of ESG criteria into their business functions and strategic operations.
Vigeo Eiris methodologies and rating services adhere to the strictest quality standards and have been certified to the independent ARISTA® standard.
Vigeo Eiris is present in Paris, London, Boston, Brussels, Casablanca, Milan, Montreal, Santiago and Tokyo and has a team of 200. The agency works with partners through its “Vigeo Eiris Global Network” in every continent.
Nothing in this press release should be construed as a solicitation or offer, legal, tax or other advice, or recommendation to engage in any transaction in any jurisdiction. Any offer of any securities will solely take place on the basis of the Prospectus, the relevant Final Terms and any related legal documentations.
