WASHINGTON, December 8, 2022 – The World Bank (International Bank for Reconstruction and Development, IBRD, AAA/Aaa) today issued an IDR 400 billion (USDeq. 25 million) 5-year Sustainable Development Bond due December 2027. This transaction is part of the World Bank’s effort to issue Sustainable Development Bonds while engaging with investors to highlight the urgency of mainstreaming climate action. Western Asset Management Company was the sole investor in the transaction on behalf of client assets. Bank of America Securities was the underwriter of the transaction.
Heike Reichelt, Head of Investor Relations and Sustainable Finance, World Bank Treasury, said “We are pleased to see continued investor interest in climate action. The World Bank’s holistic approach to integrating climate change across operations is central to sustainable development and an example of how climate action can be mainstreamed as a consideration for investment and decision-making.”
Kevin Ritter, Portfolio Manager, Western Asset Management Company, said “We are excited to collaborate with the World Bank on this opportunity. We find the income profile and potential total return of the Indonesian rupiah-denominated issuance attractive. Additionally, supporting the World Bank’s Sustainable Development Bond Program—which adheres to the highest industry standard with respect to transparency and the use of proceeds—provides a unique and credible opportunity to support the financing of sustainability-enhancing development programs, including its program of climate-related investments, while at the same time enabling specific clients to meet their investment objectives.”
As the largest multilateral financier of climate action in developing countries, the World Bank works to incorporate climate activities into all its operations, including investments in social sectors such as education and health. In the last fiscal year all IBRD projects were screened for climate risk and over 90 percent incorporated dedicated climate components. This includes projects across sectors and regions, not only sectors typically associated with climate investments.
The World Bank issues Sustainable Development Bonds in the international capital markets to support the financing of sustainable development activities designed to achieve positive social and environmental impacts in developing countries, while raising awareness of specific development themes across a range of sectors. This bond was issued under the World Bank’s Sustainable Development Bond Framework.
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 (SDGs). World Bank bonds are aligned with the Sustainability Bond Guidelines published by the International Capital Market Association and as such support the financing of a combination of green and social, i.e., “sustainable development” projects, programs and activities in IBRD member countries as described in the World Bank Sustainable Development Bond Framework. The World Bank is also a member of the Executive Committee of the Green Bond, Social Bond, and Sustainability 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. The World Bank Sustainable Development Bond Framework, the World Bank’s Sustainable Development Bond Impact Report, and the information set forth therein are not a part of, or incorporated by reference into, the offering documentation.
Contact
Investor Relations and Sustainable Finance | World Bank Treasury | debtsecurities@worldbank.org
