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First World Bank Green Bonds Designed for Japanese Investors
An innovative way for Japanese investors to help combat climate change through a high quality bond investment
Tokyo, January 18, 2010 –
The World Bank (International Bank for Reconstruction and Development, rated Aaa/AAA) and Daiwa Securities Group announced today final terms for the World Bank’s inaugural issuance of green bonds designed specifically for investors in Japan. World Bank green bonds support projects in the World Bank’s member countries that meet specific criteria for low-carbon development, and are an opportunity for investors to support climate solutions through their investment. The World Bank raised NZD 150 million (approximately USD 110.7 million equivalent) through these 5-year bonds.
“Tackling climate change will take immense resources that will only come from a well-orchestrated flow of public and private finance. World Bank green bonds are an important early effort to show one way in which this can be done. We appreciate the support from Japanese investors as it demonstrates that private citizens can safely and profitably invest their savings today while also helping provide a better world for their children,” said Robert B. Zoellick, President of the World Bank Group.
The issuance was arranged by Daiwa Capital Markets Co. Ltd, the wholesale securities firm under the Daiwa Securities Group, and distributed by Daiwa Securities Co. Ltd. to Japanese retail and institutional investors.
“Climate change is widely recognized as the major environmental problem facing the earth. It is everyone’s mission to take action against it. To this end, Daiwa Securities Group is pleased to announce the launch of the first Green Bond transaction in Japan in collaboration with The World Bank. The bond will give Japanese individuals the opportunity of safely investing their money knowing the proceeds will be used to foster projects that are environmentally friendly.” said Shigeharu Suzuki, President and CEO of Daiwa Securities Group Inc.
Amount: NZD 150,000,000
Settlement date: February 2, 2010
Maturity date: January 29, 2015
Redemption Amount: 100%
Coupon: 5.23% S.A.
Denomination: NZD 1,000
Clearing systems: Euroclear, Clearstream
Lead Manager: Daiwa Capital Markets Europe Limited
World Bank green bonds support World Bank-funded projects that are designed to tackle the causes and consequences of climate change in the developing world. The types of projects that may be supported by World Bank green bonds include alternative energy installations, funding for new technologies that reduce greenhouse gas emissions, reforestation, watershed management and flood protection. The proceeds of the issuance will be credited to a special account that will be used to support these sorts of projects. To date, the World Bank has issued the equivalent of approximately US$960 million of green bonds.
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 186 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 World Bank bonds 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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