WASHINGTON, D.C. November 21, 2019 —The World Bank (International Bank for Reconstruction and Development, IBRD rated Aaa/AAA) issued a USD 28.6 million 5-year Sustainable Development Bond as part of ongoing efforts to raise awareness for the vital role fresh and saltwater resources play for people, livelihoods, and the planet.
Credit Suisse Securities (Europe) Ltd., through its Impact Advisory and Finance Department, acted as the sole manager of the transaction.
World Bank bonds support the financing of sustainable development projects and programs across a range of critical development sectors in member countries. This includes projects designed to promote strong governance of marine and coastal resources to support sustainable fisheries and aquaculture, make coastlines more resilient, establish coastal and marine protected areas, and those which improve solid waste management to reduce pollution in waterways and oceans. This “Blue Economy” approach supports economic growth, social inclusion and the preservation or improvement of livelihoods while at the same time ensuring the environmental sustainability of oceans and coastal areas.
“World Bank bonds provide an opportunity for investors to engage on purpose, impact and the Sustainable Development Goals. We are pleased to partner with Credit Suisse to focus attention on the importance that water conservation and the sustainable use of our oceans and waterways play in development”, said George Richardson, Director of Capital Markets, World Bank.
The World Bank bond forms the collateral for Credit Suisse’s Low Carbon Blue Economy Note, which was placed with Credit Suisse’s private wealth management clients globally. The Low Carbon Blue Economy Note as collateralized by the World Bank bond was well received and illustrates the desire for private investors to use their investment to engage on critical topics like the Blue Economy.
"Credit Suisse is delighted to partner with the World Bank to highlight the need for investment in one of the most important ecosystems for fighting climate change and creating sustainable livelihoods for billions of people – the ocean value chain. Absorbing approximately 30% of the carbon dioxide created by humans and generating 50% of the world's oxygen, yet significantly underfunded from a private capital perspective, ocean health is critical. Funding, such as this, supports the World Bank, which in turn supports projects from sustainable fisheries to marine protected areas to ocean waste upcycling and helps us close the funding gap identified by the Sustainable Development Goal 14, "life below water", said Marisa Drew, CEO of the Impact Advisory and Finance Department at Credit Suisse.
The World Bank issues US$50-US$60 billion in the global capital markets every year and proceeds of all its bonds support the financing of development programs that are aligned with the Sustainable Development Goals. This includes, for example, projects that are helping to: improve flood management through improved solid waste management in Philippines; preserve and grow fish stocks and related livelihoods in Peru; and improve management of marine areas and strengthen fisheries value chains in Seychelles.
For examples of projects referenced above, see the following links:
Philippines: Metro Manila Flood Management Progam: https://projects.worldbank.org/en/projects-operations/project-detail/P153814
Peru: National Program for Fishing and Aquaculture Innovation: https://projects.worldbank.org/P155902?lang=en
Seychelles: Sustainable Fisheries and Marine Resources Conservation: https://projects.worldbank.org/P155642/?lang=en&tab=overview
Project examples are provided for illustrative purposes only and no assurance can be provided that disbursements for projects with these specific characteristics will be made by the World Bank during the term of the bonds described herein.
About the World Bank
The World Bank 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.
About Credit Suisse AG
Credit Suisse AG is one of the world's leading financial services providers and is part of the Credit Suisse group of companies (referred to here as 'Credit Suisse'). Our strategy builds on Credit Suisse's core strengths: its position as a leading wealth manager, its specialist investment banking capabilities and its strong presence in our home market of Switzerland. We seek to follow a balanced approach to wealth management, aiming to capitalize on both the large pool of wealth within mature markets as well as the significant growth in wealth in Asia Pacific and other emerging markets, while also serving key developed markets with an emphasis on Switzerland. Credit Suisse employs approximately 47,440 people. The registered shares (CSGN) of Credit Suisse AG's parent company, Credit Suisse Group AG, are listed in Switzerland and, in the form of American Depositary Shares (CS), in New York. Further information about Credit Suisse can be found at www.credit-suisse.com.
Net proceeds of the bonds described herein 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 securities of the International Bank for Reconstruction and Development ("IBRD"), also known in the capital markets as "World Bank". Any offering of World Bank securities 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 securities may not be offered or sold except in compliance with all such laws.
Heike Reichelt, Head of Investor Relations and New Products
The World Bank Treasury