WASHINGTON, DC, November 17, 2023 – The World Bank (International Bank for Reconstruction and Development or “IBRD”, rated Aaa/AAA) has raised EUR 60 million from retail investors in Italy with a 5-year fixed rate callable Sustainable Development Bond due November 17, 2028. This transaction marks the World Bank’s return to the Italian retail market since its last issuance in 2018.
Proceeds of the bond will be used to support the financing of eligible sustainable development activities designed to achieve positive social and environmental impacts in developing countries in line with the World Bank’s mission to reduce poverty and boost shared prosperity on a livable planet.
The EUR-denominated Sustainable Development Bond was offered to investors from October 16, 2023 until November 10, 2023. The bond pays a gross fixed rate quarterly coupon of 3.2% per annum.
BNP Paribas is the lead manager for the transaction. The bond was distributed by Banca Generali S.p.A., Banca Nazionale del Lavoro S.p.A., Banca Sella Holding S.p.A., Cassa Lombarda S.p.A., Directa SIM S.p.A, Equita SIM S.p.A., Finint Private Bank S.p.A., Intermonte SIM S.p.A., Mediobanca - Banca di Credito Finanziario S.p.A, and Zurich Italy Bank S.p.A. The bond was listed and is traded on Borsa Italiana’s MOT regulated market, EuroMOT, Euronext Group.
“Mobilization of the private capital is essential if we are to close the financing gap needed to support sustainable development and help developing countries address some of the most pressing challenges they are facing such as climate change, biodiversity loss, pandemics, and conflict and fragility. Retail investors play an incredibly important role in putting savings to work for purpose and positive impact. We are thrilled to be back in the Italian retail market and thank investors for their continued support of World Bank bonds and the World Bank’s vision to create a world free of poverty on a livable planet,” said Jorge Familiar, Vice President and Treasurer, World Bank.
“We are extremely proud to have been a part of this new issuance from the World Bank of a Sustainable Development Bond and congratulate all the distributors involved for raising EUR 60 million. As many Italian retail investors are increasingly becoming aware of sustainability, this issuance represents a landmark as well as a further step towards the goal of building portfolios that can still focus on returns while they support projects that can leave a positive impact on the world we live in,” said Andrea Magnani, Head of Distribution Italy, BNP Paribas Global Markets.
“The Fixed Income MOT market of Borsa Italiana, part of the Euronext Group, offers a dynamic, transparent, and efficient environment and provides investors with direct access to financial instruments that are also fundamental for sustainable development. We are proud of the World Bank's decision to list its bond on our market. The MOT is an important reference point for the listing of sustainable debt instruments exemplifying Euronext's leadership in ESG bonds,” said Fabrizio Testa, CEO of Borsa Italiana - Euronext Group.
More information about the Sustainable Development Bonds can be found on the website https://investimenti.bnpparibas.it/prodotti-di-investimento/obbligazioni/obbligazioni-world-bank/XS2702860896
Summary of terms (*)
World Bank (International Bank for Reconstruction and Development, IBRD)
5 years, unless called earlier
17th November 2028
Issue and Settlement Date:
17th November 2023
3.2% per annum, payable quarterly
EuroMOT segment of Borsa Italiana (see above)
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. The World Bank’s Sustainable Development Bond Impact Report illustrates how World Bank bond proceeds support the financing of sustainable development projects and programs and contribute to achieving the SDGs.
More information on World Bank bonds is available at www.worldbank.org/debtsecurities.
About BNP Paribas
BNP Paribas is a leading bank in Europe with an international reach. It has a presence in 75 countries, with more than 189,000 employees, including more than 146,000 in Europe. The Group has key positions in its three main activities: Domestic Markets and International Financial Services and Corporate & Institutional Banking, which serves corporate and institutional investors. The Group helps all its clients (individuals, community associations, entrepreneurs, SMEs, corporate and institutional clients) to realise their projects through solutions spanning financing, investment, savings and protection insurance. In Europe, the Group has four domestic markets (Belgium, France, Italy and Luxembourg) and BNP Paribas Personal Finance is the leader in consumer lending. BNP Paribas is rolling out its integrated retail-banking model in Mediterranean countries, in Turkey, in Eastern Europe and a large network in the western part of the United States. In its Corporate & Institutional Banking and International Financial Services activities, BNP Paribas also enjoys top positions in Europe, a strong presence in the Americas as well as a solid and fast-growing business in Asia-Pacific.
For further information visit https://investimenti.bnpparibas.it.
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 and 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.
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 contains or references links to websites operated by third parties ("Third Party Websites"). These links are provided for information purposes only. Third Party Websites are not under control of IBRD. IBRD is not responsible for the content of, or links contained in, any Third Party Website, and the inclusion of such links does not imply IBRD endorses, recommends, or accepts any responsibility for the content of such Third Party Website.
Heike Reichelt, The World Bank
+1 202 477 2880
Community (on behalf of BNP Paribas)
Silvia Tavola/Angela Gammino
+39 02 89404231