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World Bank Green Bond Factsheet

World Bank Green Bond Factsheet

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World Bank Issues its Second Equity Index-Linked Green Bond

Washington, DC, September 23, 2014 – Today, the World Bank (International Bank for Reconstruction and Development, IBRD, rated Aaa/AAA), priced its second equity-index linked green bond this year – this time for a European pension fund. The EUR10 million 12-year structured World Bank Green Bond is linked to the performance of the Ethical Europe Equity Index, an index that selects eligible sustainable companies for inclusion based on analysis by Vigeo and Forum Ethibel. The index is managed by Solactive. This transaction is very similar to the inaugural green equity linked transaction launched earlier this year, for which BNP Paribas was also the sole lead manager.

World Bank Green Bonds raise funds for projects seeking to mitigate climate change or help affected people adapt to it. Examples of the types of projects supported by World Bank Green Bonds include renewable energy installations, energy efficiency projects, and new technologies in waste management and agriculture that reduce greenhouse gas emissions and help finance the transition to a low carbon economy. They also include financing for forest and watershed management and infrastructure to prevent climate-related flood damage and build climate resilience.

Since its inaugural green bond in 2008, the World Bank has now raised more than USD 6.7 billion equivalent through 72 green bonds in 17 currencies.

Transaction Summary:

World Bank (International Bank for Reconstruction and Development, IBRD)
Issuer rating:
EURO 10 million (USDeq. 12.88 million)
Settlement date:
October 7, 2014
Maturity date:
October 7, 2026
Issue price:
Redemption amount:
100% plus Premium linked to performance of the Ethical Europe Equity Index (total redemptiion amount in floored at 103%)
EUR 100,000
Luxembourg Stock Exchange
Clearing system:
Euroclear / Clearstream
Joint lead managers:
BNP Paribas

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 operates as a global development cooperative owned by 188 nations. It provides its members with financing, expertise and coordination services so they can achieve equitable and sustainable economic growth in their national economies and find effective solutions to pressing regional and global economic and environmental problems. The World Bank has two main goals: to end extreme poverty and promote shared prosperity. It seeks to achieve them primarily by providing loans, risk management products, and expertise on development-related disciplines and by coordinating responses to regional and global challenges. It has been issuing sustainable development bonds in the international capital markets for over 60 years to fund its activities that achieve a positive impact. Information on bonds for investors is available on the World Bank Treasury website: (www.worldbank.org/debtsecurities).

For more information about World Bank green bonds, see: http://treasury.worldbank.org/cmd/htm/WorldBankGreenBonds.html

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