Washington, D.C., June 20, 2023 — The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today issued a Swedish Kroner 1 billion 5-year Sustainable Development Bond while engaging with investors on the importance of road safety during the launch. Folksam is the sole investor in this transaction and Skandinaviska Enskilda Banken (SEB) arranged the transaction.
The World Bank raises funds by issuing Sustainable Development Bonds in international capital markets to support the financing of sustainable development projects in developing countries across a range of sectors. Projects are designed to achieve positive social and environmental impact in line with the World Bank’s “twin goals” of eliminating extreme poverty and promoting shared prosperity in a sustainable manner.
In developing countries where social safety nets are fragile, injuries and fatalities from traffic crashes disproportionately affect low-income households. In addition to the human tragedy, loss of income and high medical expenses have a tangible impact on country-wide efforts to reduce poverty and hold onto hard-won economic gains. The World Bank works with its member countries to ensure that road safety is mainstreamed through relevant investment decisions in areas like transportation and urban development. In addition, World Bank programs focus on strengthening local, regional, and national institutions for better engineering, road safety management, improved training, enforcement, and emergency medical and rehabilitation services for post-crash care.
Jorge Familiar, Vice President and Treasurer, World Bank, said, “People in low-income countries bear the highest proportion of the economic and social burden of road crashes, integrating road safety across all relevant World Bank activities has great ability for positive impact. We are grateful to Folksam for supporting our activities and highlighting road safety as a development priority.”
“Road safety is a key issue for the Folksam Group. We have been conducting road safety research in Sweden for over 50 years and have long been involved in road safety issues. Now, together with the World Bank, we are taking another important step forward by highlighting that private capital can support investments in road safety. We also do it in a way that is beneficial in several respects – contributing to a more sustainable world by enabling necessary funding to projects on the ground level while providing safe and attractive investments on behalf of our clients,” said Ylva Wessén, president and CEO of the Folksam Group.
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.
Net proceeds of the bonds described herein are not committed or earmarked for lending to, or financing of, any particular projects or programs. Payments on the bonds described herein are not funded by 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.
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Investor Relations and Sustainable Finance