Washington, DC, December 13, 2017 – The World Bank (International Bank for Reconstruction and Development, IBRD) has launched the first bonds in Switzerland that directly link private investors to the Sustainable Development Goals (SDGs). Returns are linked to the performance of companies advancing global development priorities set out in the SDGs, including gender equality, health, and sustainable infrastructure.
Banque SYZ SA is the sole distributor of the notes. The World Bank will use the proceeds to support the financing of projects that advance its goals of eliminating extreme poverty and boosting shared prosperity, and that are aligned with the SDGs.
The return on investment in the bonds isdirectly linked to the stock performance of companies included in the Solactive Sustainable Development Goals World MV Index. The index includes 30 companies that, based on the methodology developed by Vigeo Eiris’ Equitics, dedicate at least one fifth of their activities to sustainable products, or arerecognized leaders in their industrieson socially and environmentally sustainable issues. Solactive applies volatility and diversification filters to reach the final index composition. Vigeo Eiris is a global provider of environmental, social and governance research to investors and public and private corporates.
The bonds were arranged by BNP Paribas as part of the “SDGs Everyone” initiative. Under the initiative, the World Bank issues bonds that raise funding to support the financing of projects that support the SDGs, and investors benefit from the performance of companies included in the equity index.
This offering follows up offerings of World Bank Sustainable Growth bonds to retail investors in Belgium and Italy, and is part of a wider initiative aimed at providing European retail investors with high quality investment opportunities to support the SDGs.
Arunma Oteh, World Bank Vice President and Treasurer, said: “We need to fundamentally rethink development finance to achieve the Sustainable Development Goals. Thanks to our partnership with Banque Syz and BNP Paribas, we are able to offer Swiss private investors an attractive risk-reward opportunity that also demonstrates the powerful role of capital markets in connecting savings with development priorities. We hope to continue expanding these offerings for investors and markets across the globe.”
Eric Syz, CEO of SYZ Group, said: “We are very proud to partner with the World Bank through their investment solution supporting the Sustainable Development Goals. Innovation is one of our core values, and as a responsible investor we are pleased to contribute to new solutions creating performance through investments that incorporate environmental, social and governance considerations.”
Olivier Osty, Executive Head of Global Markets, BNP Paribas, said: “We are pleased to once again be working with the World Bank as it extends its successful programme of Sustainable Growth Bonds issuance into Switzerland. Now more than ever, there is growing urgency to put private sector capital to work in development projects if we are to make progress towards achieving the SDGs. Sustainability is fundamental to our strategy at BNP Paribas so we are pleased to play a part in this.”
Learn more about World Bank Sustainable Development Bonds here: https://youtu.be/IS7l7KSZJK0
Summary of terms (*)
| Issuer: | International Bank for Reconstruction and Development, IBRD |
Issuer rating: | Aaa /AAA (Moody's / S&P) |
Settelement date: | 15 December 2017 |
Maturity: | 6-years |
Index: | Solactive Sustainable Development Goals World MV Index (SOLWGOAL) |
Coupon: | None |
Maturity date: | 15 December 2023 |
Issue price: | 100% |
Specified Denomination: | USD 1,000 |
Redemption at maturity (per Specified Denomination) | Specified Denomination plus any Index Linked Interest Amount |
Index Linked Interest Amount: | USD 1,000 x Participation Rate x Index Return Index Return = the quotient expressed as a percentage, equal to (i) final official closing level of the index minus the initial official closing level of the index, divided by (ii) the final official closing level of the index Participation Rate = 100% |
Listing: | Luxembourg Stock Exchange |
ISIN: | XS1721363387 |
Clearing systems: | Euroclear / Clearstream |
Sole lead manager: | BNP Paribas |
(*) Please see the Swiss Offering Prospectus and Final Terms for a detailed description of the Terms and Conditions of the bonds and the related risks (including the credit risk, the liquidity risk, the risk of underperformance of the underlying index, and the index-related risks) and possible costs and expenses with regard to an investment in the bonds, available at https://switzerland.sustainablegrowthbond.com. Any offer of the bonds will solely take place on the basis of the Swiss Offering Prospectus and Final Terms prepared by the World Bank or on behalf of the World Bank. The Swiss Offering Prospectus and the Final Terms have not been approved or disapproved by any competent authority in the European Economic Area and is not and does not comprise a “base prospectus” for the purposes of Article 5.4 of EU Directive 2003/71/EC (Prospectus Directive).
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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 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 70 years to fund its activities that achieve a positive impact. Information on World Bank bonds for investors is available here www.worldbank.org/debtsecurities.
World Bank Bonds Use of Proceeds
The World Bank (IBRD) issues USD 50 to 55 billion in bonds for sustainable development every year. Bond proceeds are used to support the financing of sustainable development projects and programs in countries that are middle-income or creditworthy lower-income IBRD members and working in partnership with IBRD to eliminate extreme poverty and boost shared prosperity. Projects supported by IBRD are designed to achieve a positive social impact and undergo a rigorous review and internal approval process aimed at safeguarding equitable and sustainable economic growth.
About BNP Paribas
BNP Paribas (www.bnpparibas.com) 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 SYZ Group
Founded in Geneva in 1996, SYZ is a Swiss banking group experiencing strong growth, focusing exclusively on asset management via two complementary business lines: high-end private banking and institutional asset management. SYZ offers private and institutional investors comprehensive portfolio management, with an active investment style and a focus on risk reduction that is clearly committed to providing absolute performance through alpha generation. SYZ is an independent, family-owned company with a global footprint. The Group has a solid capital base and benefits from being privately held and independent.
About the Sustainable Development Goals (SDGs)
The Sustainable Development Goals (SDGs) are a collection of 17 interrelated global goals set out by the United Nations. Each of the broad goals has several targets. The total number of targets is 169. The SDGs cover a broad range of social development issues, such as poverty, hunger, health, education, climate change, gender equality, water, sanitation, energy, environment and social justice. The SDGs are also known as "Transforming our World: the 2030 Agenda for Sustainable Development" or Agenda 2030 in short. The goals were developed to replace the Millennium Development Goals (MDGs) which ended in 2015. Unlike the MDGs, the SDG framework does not distinguish between "developed" and "developing" nations. Instead, the goals apply to all countries.
