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PRESS RELEASE April 16, 2020

World Bank Prices SEK 11.5 Billion Sustainable Development Bonds to Support Programs in Member Countries

WASHINGTON, D.C., April 16, 2020 — The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) priced a new SEK benchmark due December 23, 2022, raising SEK 11.5 billion (USD eq. 1.15 billion). World Bank bonds support the financing of a range of sustainable development projects and programs in member countries, including health.

This issuance is part of the World Bank’s effort to raise awareness about the institution’s health program, particularly how the World Bank is working with member countries to support their efforts to prevent, detect, and respond to the rapid spread of COVID-19.

The bond, which is the largest priced by any sovereign, supranational, and agency (SSA) issuer to date in SEK, attracted investors from Scandinavia and elsewhere in Europe with asset managers, pension funds, and insurance funds representing 91.3% of investors. The remainder was made up by banks, bank treasuries, and corporates (6.1%) and central bank and official institutions (2.6%). The bond offers an annual coupon of 0.250% and a yield of 0.259%.

Skandinaviska Enskilda Banken (SEB) was the sole lead manager for this transaction.

We are very happy to see the continued, strong support of investors globally for the World Bank’s development initiatives, including our response to COVID-19. We appreciate the steadfast support of Scandinavian investors for the World Bank’s sustainable development mission and particularly at a time when we are mobilizing financing to help member countries strengthen health systems and support their economies,” said Jingdong Hua, Vice President and Treasurer, World Bank.

We would like to express our appreciation of IBRD and their initiative to ease the economic and social consequences of the pandemic that we are now experiencing. It feels very good to be able to make an investment that supports sustainable development projects including the fight against the negative consequences of the pandemic given our vision that our customers should feel secure in a sustainable world,” said Ylva Wessén, Chief Executive Officer, the Folksam Group.

As a pension fund with members mainly working in social services and health care, we appreciate the opportunity to combine a good risk-adjusted-return with a possibility to contribute to sustainable development including health care in developing countries,” said Michael Nellemann Pedersen, Chief Investment Officer, PKA.

The spread of COVID-19 and its effects are currently creating great concerns for global health, but also for the economy. To be able to participate in the financing of sustainable development projects including those to fight against global diseases in this situation is very important and fully in line with Swedbank Robur's vision of being a world leader in social and sustainable value creation,” said Sofia Holma, Manager,Swedbank Robur.

For SEB it is a privilege to be capable of assisting our clients, both the World Bank and investors, in raising capital to address global challenges during the time of COVID-19 – to have institutions like the World Bank with expertise to mitigate risk and operate locally, and clients who combine their financial mandate with ways of reducing global risks is fortunate. It makes every single SEB employee proud to be a part of it,” said Christopher Flensborg, Head of Climate and Sustainable Finance, SEB.

Transaction Summary

Issuer:

World Bank (International Bank for Reconstruction and Development, IBRD)

Issuer rating:

Aaa /AAA (Moody's/S&P)

Amount:

SEK 11.5 billion

Settlement date:

April 23, 2020

Maturity date:

December 23, 2022

Issue price:

99.976%

Issue yield:

0.259% 

Denomination:

SEK 10,000

Coupon:

0.250% per annum

Listing:

Luxembourg Stock Exchange

ISIN:

XS2160873480

Clearing system:

Euroclear/Clearstream

Lead manager:

Skandinaviska Enskilda Banken

With annual issuances between US$55-US$65 billion, World Bank bonds support the financing of programs that further the Sustainable Development Goals. World Bank bonds are aligned with the sustainability bond guidelines published by the International Capital Markets Association (ICMA). The World Bank is also a member of the Executive Committee of the Green Bond and Social Bond Principles. A key priority for the World Bank’s capital markets’ engagement is building strategic partnerships with investors to promote the importance of private sector financing in sustainable development.

For more information on the World Bank Group and COVID-19

www.worldbank.org/en/who-we-are/news/coronavirus-covid19

Disclaimers

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. The net proceeds from the sale of World Bank securities are used to finance sustainable development projects and programs in World Bank’s member countries without being committed or earmarked for lending to, or financing of, any particular projects or programs. Returns on World Bank securities are not linked to the performance of any particular project or program.

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.

Contact

Heike Reichelt, Head of Investor Relations and New Products

World Bank Treasury

debtsecurities@worldbank.org


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