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World Bank Green Bond Factsheet

World Bank Green Bond Factsheet

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World Bank Issues its First Equity Index-Linked Green Bond
The 10-year Euro 50 million World Bank Green Bond is linked to the Ethical Europe Equity Index

Washington, DC, July 23, 2014 – Today, the World Bank (International Bank for Reconstruction and Development, IBRD, rated Aaa/AAA), announced that BNP Paribas Cardif  has purchased a Euro 50 million 10-year structured World Bank Green Bond. This 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 is the first sustainable equity index-linked green bond that has been designed and promoted by BNP Paribas Global Equities and Commodity Derivatives.

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.

With today’s issue, the World Bank has once again expanded the investor base for the green bond market, this time responding to demand from institutional investors seeking structured green bond products. The World Bank has now raised USD 6.4 billion equivalent through 67 green bonds in 17 currencies, since its inaugural green bond in 2008.

“This is the first equity index-linked World Bank Green Bond. It is a further step in the development of the green bond market and expands the investor base to investors seeking to benefit from the financial performance of a sustainable equity index, while supporting climate-focused activities in World Bank member countries. We were very pleased to have worked with BNP Paribas Cardif and BNP Paribas Global Equities and Commodity Derivatives to design this structure,” said Doris Herrera-Pol, Director and Head of Global Capital Markets, World Bank.

Transaction Summary:

Issuer:
World Bank (International Bank for Reconstruction and Development, IBRD)
Issuer rating:
Aaa/AAA
Amount:
EURO 50 million (USDeq. 67.35 million)
Settlement date:
August 7, 2014
Coupon:
0%
Maturity date:
August 7, 2024
Issue price:
100%
Redemption amount:
100% plus Premium linked to performance of the Ethical Europe Equity Index
Denomination:
EUR 100,000
Listing:
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 bonds in the international capital markets for over 60 years to fund its activities. 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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