Washington, D.C., September 11, 2018 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) has launched a new series of bonds in Switzerland that directly link 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 climate, gender, and health.
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 is directly 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 are recognized leaders in their industries on 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 are arranged by BNP Paribas as part of the “SDGs Everyone” initiative. Under the initiative, the World Bank issues bonds 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 on previous offerings of World Bank Sustainable Growth bonds in partnership with Banque Syz.
Arunma Oteh, World Bank Vice President and Treasurer, said: “Achieving the Sustainable Development Goals requires a fundamental shift in development finance – the active participation of private investors is key to this change. Thanks to our deepening partnership with Banque SYZ and BNP Paribas who arranged the bond, Swiss private investors will have a new opportunity to participate in a product that demonstrates the powerful role of capital markets in connecting savings with development priorities.”
Eric Syz, CEO of SYZ Group, said: “The economic impact of climate change is massive: it affects direct assets, damages future returns and endangers fragile economies. If the awareness to shift to low-carbon emissions is widely accepted, we need to address solutions that protect our investors’ capital and take advantage of both existing and new opportunities. Therefore, we are very proud to partner again 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, Head of Global Markets, BNP Paribas, said: “We are pleased to be working with the World Bank once again, as it renews 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. Sustainability is core to our strategy at BNP Paribas and we are committed to supporting our clients in working together to achieve the SDGs.”
Learn more about World Bank Sustainable Development Bonds here: https://youtu.be/IS7l7KSZJK0Summary of terms (*)
International Bank for Reconstruction and Development, IBRD
Aaa /AAA (Moody's / S&P)
October 12, 2018
Solactive Sustainable Development Goals World MV Index (SOLWGOAL)
October 12, 2022
at maturity (per Specified Denomination): Specified Denomination plus any Index Linked Interest Amount
Index Linked Interest Amount:
the product of USD 1,000 multiplied by the Participation Rate multiplied by the greater of (i) the Index Return and (ii) zero (0).
Index Return = the quotient expressed as a percentage, as calculated by the Calculation Agent, equal to (i) the Final Index Level minus the Initial Index Level divided by (ii) the Initial Index Level.
Participation Rate = expected to be at least 100%
Luxembourg Stock Exchange
Sole lead manager:
(*) This press release does not constitute an offer for sale of the bonds described. The offering and sale of the bonds described in this press release are subject to restrictions under the laws of Switzerland. Securities may not be offered or sold except in compliance with all such laws. 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).
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.
About SYZ Group
Founded in Geneva in 1996, SYZ is a fast growing Swiss banking group exclusively dedicated to asset management, through 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 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 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.