WASHINGTON, DC, November 6, 2019 – The World Bank (International Bank for Reconstruction and Development or IBRD, Aaa/AAA) launched its first Sustainable Development Bond in Norwegian krona to raise awareness for water and ocean resources. The NOK 2.5 billion 1.75% bond matures on November 6, 2024. Nordea Bank Abp was the sole underwriter and distributor for the transaction.
Engagement around this World Bank bond highlights the sustainable development theme of water and ocean resources and the challenge of plastic waste pollution in oceans. Including this transaction, the World Bank has issued almost USD 3 billion equivalent through more than thirty Sustainable Development Bonds to raise awareness for clean water, sanitation, and marine protection (Sustainable Development Goals 6 and 14).
Heike Reichelt, Head of Investor Relations and New Products, World Bank Treasury said: “This transaction is part of the World Bank’s initiative to raise awareness for the critical role of water and ocean resources. It shows that there’s growing interest from investors to engage on specific sustainable development goals and that they value the World Bank as an opportunity to invest for impact”.
The World Bank, as the largest multilateral source of financing for ocean and water projects in developing countries, is committed to working with countries to ensure access to safe and clean water and for the sustainable use of ocean and marine resources. This includes preventing pollution from reaching oceans through better waste management.
Kamal Grossard-Amin, Head of Sovereign, Supranational & Agency Origination, Nordea said: “Nordea is very pleased to support the World Bank in their commitment to sustainable development, particularly raising awareness for the need to protect and preserve our planet’s oceans and marine life. The bond received enormous support from the Norwegian investor community, which is unsurprising given that Norway has one of the longest coastlines in the world, and for whom maritime activities and fishing are integral to the society”.
The biggest proportion of investor interest came from bank treasuries (70%), followed by pension funds (13%), private banks (8%), and asset managers (5%). In terms of geographical distribution, 88% was placed with accounts in Nordic countries, with the remainder placed in Switzerland and with other European investors. Key investors involved in the transaction included DNB Treasury, Equinor, and Nordea Investment Management and Treasury.
Reidar Bolme, Group Treasurer, DNB said: “It’s our responsibility to lead the Norwegian investment community in increasing the focus on sustainable investments. We therefore welcome the opportunity to do so whilst also raising awareness towards the crucial need to protect our future water supply. DNB is proud to partner with the World Bank in order to support this initiative”.
Investor Distribution
By Geography |
| By Investor Type |
|
Bank Treasuries | 70% | Nordic countries | 88% |
Pension Funds | 13% | Switzerland | 7% |
Private Banks | 8% | Other | 5% |
Asset Managers | 5% |
|
|
Central Banks/Official Institutions | 3% |
|
|
Other | 1% |
|
|
Transaction Summary
World Bank (International Bank for Reconstruction and Development, IBRD) | |
Issuer rating: | Aaa/AAA |
Amount: | NOK 2.5 billion |
Settlement date: | November 6, 2019 |
Maturity date: | November 6, 2024 |
Issue price: | 99.8275% |
Issue yield: | 1.7865% p.a. |
Coupon: | 1.750% p.a. |
Denomination: | NOK 10,000 |
Listing: | Luxembourg Stock Exchange |
Lead managers: | Nordea Bank Abp |
ISIN: | XS2077546500 |
Net proceeds of the bonds described herein are used by the World Bank to finance sustainable development projects and programs in the World Bank’s member countries without being committed or earmarked for lending to, or financing of, any particular projects or programs. 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 World Bank bonds will take place solely on the basis of the relevant offering documentation including, but not limited to, the prospectus, term sheet and/or final terms, as applicable, prepared by the World Bank or on behalf of the World Bank, and is subject to restrictions under the laws of several countries. World Bank bonds may not be offered or sold except in compliance with all such laws.
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 70 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.
Contact
Heike Reichelt, Head of Investor Relations and New Products
The World Bank Treasury
debtsecurities@worldbank.org
