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PRESS RELEASE January 7, 2021

World Bank Prices NOK 5 Billion Sustainable Development Bond While Raising Awareness for Health and Gender Equality

WASHINGTON, D.C., January 7, 2020 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) priced its first Norwegian krone-denominated benchmark of 2021, a NOK 5 billion 5-year floating rate Sustainable Development Bond. The World Bank launched the Sustainable Development Bond while raising awareness for the World Bank’s strategy, projects and programs that focus on gender equality and health and highlight how COVID-19 disproportionately impacts women.

The 5-year floating rate bond is the largest NOK deal to date for a supranational issuer. The majority of the deal was placed with banks, bank treasuries, and corporates. Overall, Norwegian investors picked up the largest share at 65%, followed by Danish and Swedish investors at 19% and 16%, respectively.

Participating investors included Oslo Pension Fund, Sparebank 1 SR-Bank, Sparebanken Helgeland, Sparebanken Øst, Sparebanken Østlandet, Sparebanken 1 SMN, and Storebrand Bank, among others. Nordea Bank Abp acted as lead manager for the transaction.

Jingdong Hua, Vice President and Treasurer, World Bank, said, “We are pleased to be back in the NOK market and thank investors for their ongoing support of the World Bank’s mandate. Purpose and impact continue to drive our communication with investors – in our engagement with investors around this transaction, we are highlighting the critical importance of health and gender equality as the World Bank works with member countries towards a resilient recovery from COVID-19”.

Kristine Lien, Portfolio Manager, Kommunalbanken, said, “Local governments have an important position in Norwegian society, accounting for a large proportion of public sector services production. As the largest lender to the Norwegian local government, KBN has an important role in enabling the local and regional governments to improve quality of life across the country. KBN is proud to support the World Bank in sustainable development projects including those that focus on health and gender equality, reducing differences and creating opportunities for all”.

John Hopp, Head of Treasury, Sparebanken Vest, said, "Sparebanken Vest was pleased to participate in yet another World Bank Sustainable Development Bond, in this case to raise awareness for health and gender equality. This bond represents both a safe and sustainable investment for Sparebanken Vest. The World Bank has been a pioneer and leader in the rapidly growing ESG investment space. At Sparebanken Vest we are also extremely focused on being a leader in terms of gender equality, and work hard to prevent unequal treatment and discrimination. Investments like this align well with the bank’s own long-term ESG strategy".

Philip Asp, Head of Investment Banking, Nordea, said, "Amidst the vast challenges that Covid-19 continues to present to the world, we applaud the efforts of the World Bank to support those most vulnerable to the effects of the pandemic. Nordea is proud to support the World Bank in raising awareness for this issue”.

The World Bank’s goals of ending extreme poverty by 2030 and promoting shared prosperity in a sustainable manner are aligned with the Sustainable Development Goals (SDGs). Increasingly, investors and other market participants are using the SDGs as a framework for investment and a way to communicate support for specific development priorities. With this Sustainable Development Bond, the World Bank is raising awareness for SDG 3 (Good Health and Wellbeing) and SDG 5 (Gender Equality). Investing in World Bank bonds offers investors an opportunity to align financial and social objectives.

Investor Breakdown by Type

Banks/Bank Treasuries/Corporates

60%

Asset Managers/Insurance/Pension Funds

30%

Central Banks/Official Institutions

10%

Transaction Summary

Issuer:

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

Issuer rating:

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

Currency:

NOK

Maturity

5-year

Amount:

NOK 5,000,000,000

Settlement date:

January 13, 2021

Maturity date:

January 13, 2026

Issue price:

107.566%

Issue yield:

3mN – 1 bp

Denomination:

NOK 10,000

Coupon:

3-month NIBOR + 150 bps p.a. paid quarterly

Listing:

Luxembourg Stock Exchange

ISIN:

XS2283173222

Clearing system:

Euroclear/Clearstream

Lead manager:

Nordea Bank Abp

For more information on the World Bank Group and COVID-19: www.worldbank.org/en/who-we-are/news/coronavirus-covid19

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.

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 Market Association. 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. The World Bank’s Sustainable Development Bond Impact Report describes how the World Bank engages with investors on the SDGs and raises awareness for specific development challenges.

Disclaimers

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 described herein 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.

Contact

Heike Reichelt, The World Bank

+1 202 477 2880

debtsecurities@worldbank.org

 


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