World Bank Launches its second CER-Linked Bond
Washington, DC, September 12, 2008 - The World Bank today launched its second certified emission reduction (“CER”) linked bond. Mitsubishi UFJ Securities International PLC is the lead manager for the issue that is being offered to sophisticated investors in Japan. The US dollar denominated bond will be 100% principal protected, and will pay a fixed rate coupon for an initial period and then a coupon linked to future CER market prices and the actual volume of CERs issued by a bio-energy project in Malaysia.
Ms. Doris Herrera-Pol, Director and Global Head of Capital Markets of the World Bank, said: “Following our ground breaking CER linked transaction in June, we are delighted to be able to offer a second transaction of this type that permits Japanese investors to participate in the success of a project that aims to reduce greenhouse gas emissions in the Asian region. The World Bank is committed to offering investors attractive investment opportunities like this that contribute to sustainable development.”
Summary terms of the bond:
Principal Amount: USD 6,500,000
Settlement Date: September 17, 2008
Maturity Date: September 25, 2013
Coupon: After the initial 3% fixed rate coupon period, the bonds will pay a variable coupon linked to future CER market prices and the actual volume of CERs issued by a bio-energy project in Malaysia.
Denomination: USD 500,000
Governing Law: English
The World Bank's bond products and investor presentation can be accessed through the website of the World Bank for bond investors (www.worldbank.org/debtsecurities). For a list of selected bonds issued recently by the World Bank, see: http://treasury.worldbank.org/recentissues.
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