Washington, D.C. March 20, 2019—The World Bank (International Bank for Reconstruction and Development, IBRD rated Aaa/AAA) has launched the first Sustainable Development Bond to raise awareness for the importance of combating food loss and waste, focusing on the challenges outlined by Sustainable Development Goal 12.3: halving food waste by 2030.
Folksam Group is the sole investor in the three-year, USD 300 million bond.
One-third of all food produced in the world is lost or wasted every year. Globally, if food loss and waste could be represented as its own country, it would be the third largest greenhouse gas emitter. The resources needed to produce the food that becomes lost or wasted has a carbon footprint of about 3.3 billion tons of C02—eight percent of global emissions annually.
At the same time, approximately half of the world’s population is suffering from various forms of malnutrition: hunger, stunting, lack of key nutrients, and obesity—illneses that stifle human capital development and create a costly public health crisis.
“,” said Jingdong Hua, World Bank Vice President and Treasurer. “Through our partnership with Folksam on this bond, we hope to draw attention of investors to this global challenge, as well as highlight the role they can play in supporting solutions through their own operations.”
“,” said Laura Tuck, World Bank Vice President for Sustainable Development. “Today's bond issuance demonstrates the potential for innovative financing to make progress in this critical area."
IBRD provides support to middle-income countries to address food loss and waste from farm to fork, with investments in infrastructure, access to markets and logistics, as well as waste management. For example, IBRD finances grain storage in Mexico to reduce post-harvest losses in maize, wheat and beans, while increasing the competiveness and market inclusion of small and medium-sized grain producers.
“,” said Michael Kjeller, Head of Asset Management, Folksam Group. “We strive for these goals through all aspects of our business, taking measures to improve resource efficiency in all our operations. This includes helping re-use and recycle customers’ damaged property and zeroing in on food waste in our own cafeteria. Every improvement counts, and I am proud that we can contribute in so many different ways to the goal of responsible production and consumption.”
J.P. Morgan is the lead manager for this transaction.
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 is the original member of the World Bank Group and operates as a global development cooperative owned by 189 nations. The World Bank provides loans, guarantees, risk management products, and advisory services to middle-income and other creditworthy countries to support the Sustainable Development Goals and to end extreme poverty and promote shared prosperity. It also provides leadership to coordinate regional and global responses to development challenges. The World Bank has been issuing sustainable development bonds in the international capital markets for over 70 years to fund programs and activities that achieve a positive impact. More information on World Bank bonds is available at www.worldbank.org/debtsecurities.
Net proceeds of the bonds are not committed or earmarked for lending to, or financing of, any particular projects or programs and returns on the bonds are not linked to the performance of any particular project or program. This press release is not an offer for sale of bonds of the International Bank for Reconstruction and Development ("IBRD"), also known in the capital markets as "World Bank". Any offering of the bonds will be made only by means of a prospectus containing detailed information that will made available through J.P. Morgan Securities plc, and is subject to restrictions under the laws of several countries. Securities may not be offered or sold except in compliance with all such laws.