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State of California Buys USD 300 Million World Bank Green Bonds to Boost Global Solutions to Climate Change
Washington, DC, April 24, 2009 – The World Bank (International Bank for Reconstruction and Development – IBRD) and California State Treasurer Bill Lockyer announced today that the State has purchased USD 300 million of World Bank green bonds in furtherance of California’s climate change mitigation policies. This is the World Bank's second issue of green bonds and the first denominated in U.S. dollars. SEB, the lead manager for the World Bank's inaugural green bonds in Swedish kronor, is the sole lead manager for this transaction as well. The World Bank will credit the proceeds of this 3-year floating rate note issue to a special account funding loan disbursements to qualifying "green" projects in its member countries.
"This is a landmark investment – our first in global climate change solutions,” said Lockyer. “Buying these green bonds makes financial sense for California. It strengthens our portfolio’s diversity while adding a sound investment with a triple-A rated issuer. And it tells the world that when it comes to battling climate change, California is prepared to contribute not just its policies, but its money, too.”
“We are seeing a great interest for the product and the investment from the Treasurer of the State of California is a further confirmation that the product meets investor requirements,” said Magnus Carlsson, Executive Vice President and Head of Merchant Banking, SEB.
“We all know that meeting the climate change challenge means raising finance through the full array of tools available in the capital markets. World Bank green bonds are one way to begin doing this, and we hope it helps accelerate innovation in this area. We're very pleased that Bill Lockyer and his colleagues in California are joining in this effort, and with the confidence the State is showing in the quality and liquidity of World Bank bonds as a means to do it," said World Bank Treasurer Kenneth Lay.
Issuer: International Bank for Reconstruction and Development (IBRD)
Amount: USD 300 million
Maturity date: April 24, 2012
Issue price and Redemption Amount: 100%
Coupon Type: Floating Rate based on 3-month USD Libor
Denomination: USD 100,000.00 and integral multiples thereof
Clearing system: DTC
Lead Manager: SEB acting through SEB Enskilda Inc N.Y.
For more information on SEB’s commitment to reducing climate change and on the World Bank Green Bonds, please visit http://www.sebgroup.com, "World Bank and SEB partner with Scandinavian Institutional Investors to Finance 'Green' Projects", and "World Bank "Green Bonds Increased to SEK 2.7 billion".
This press release is not an offer for sale of Notes of the International Bank for Reconstruction and Development ("IBRD"), also known in the capital markets as “World Bank”. Any offering of the Notes will be made only by means of a prospectus containing detailed information that will made available through SEB, the sole underwriter of the notes, and is subject to restrictions under the laws of several countries. Securities may not be offered or sold except in compliance with all such laws.
SEB is a North European financial group serving some 400,000 corporate customers and institutions and five million private individuals. SEB offers universal banking services in Sweden, Germany and the Baltic countries - Estonia, Latvia and Lithuania. It also has local presence in the other Nordic countries, Poland, Ukraine and Russia and a global presence through its international network in major financial centers. On 31 December 2008, the Group's total assets amounted to SEK 2,511bn (~EUR 230bn) while its assets under management totaled SEK 1,201bn (~EUR 110bn). The Group has about 22,000 employees. Read more about SEB at: www.sebgroup.com.
The World Bank is a global development cooperative owned by its member countries. Its purpose is to help its members achieve equitable and sustainable economic growth in their economies and to find solutions to regional and global problems in economic development and environmental sustainability, all with a view to reducing poverty and improving standards of living. The International Bank for Reconstruction and Development (IBRD), rated Aaa/AAA (Moody’s/S&P) is owned by 185 countries. It is the oldest and largest entity in the World Bank Group and provides its members with financing, risk management products, and other financing services, as well as specialized expertise and strategic and convening services requested by its member countries. To fund this activity, IBRD has been issuing debt securities in the international capital markets for 60 years. The World Bank is one of the most recognized and innovative borrowers in the international capital markets. More information about the World Bank and its activities in the capital markets is available on the web at: www.worldbank.org/debtsecurities.
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