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World Bank Issues a USD 30 million 10-year Callable Step-Up Green Bond

Washington, DC, September 29, 2014 – On September 25, 2014 the World Bank (International Bank for Reconstruction and Development, IBRD, rated Aaa/AAA), issued a USD 30 million 10-year callable step-up green bond targeted at Morgan Stanley Wealth Management clients. Morgan Stanley was the sole lead manager for this green bond transaction.

The trade was first launched on Thursday September 18th 2014 and generated great momentum across the Morgan Stanley “Investing with Impact” platform for wealth management clients during the one week offer period. The initial $10 million notional size quickly grew to $30 million due to strong demand.

With this most recent transaction, the World Bank has now raised over USD 6.7 billion equivalent through 72 green bonds in 17 currencies since its inaugural green bond in 2008.

Doris Herrera-Pol, Director and Global Head of Capital Markets at the World Bank said, “The strong demand for this product shows that individual investors also have a keen interest in supporting low carbon and climate resilient growth in emerging economies. We are delighted to work with Morgan Stanley to offer World Bank Green Bonds through Morgan Stanley’s ‘Investing with Impact’ platform.”

“We congratulate the World Bank on a successful green bond issuance and on their continued leadership in the space,” said Audrey Choi, CEO of Morgan Stanley’s Institute for Sustainable Investing. “Demand continues to rise among individual investors for investment opportunities that can create positive environmental and social impact, and Morgan Stanley is proud to have been a part of the largest Wealth Management-targeted World Bank structured green bond to date.”

“We worked closely with the World Bank to develop a product that was specifically targeted at our Morgan Stanley Wealth Management clients. We managed to upsize the transaction, from the original $10MM to a final size of $30MM, within a relatively short offer period, reflecting strong appetite among investors for the World Bank name,” says Navindu Katugampola, Head of Green Bond Origination at Morgan Stanley. “We are always delighted to work on World Bank Green Bond mandates, given that the World Bank pioneered Green Bonds, is committed to helping the market evolve, and has the vision to make it happen.”

Fabio Pucci di Benisichi and Sage Zaheer, Co-heads of Structured Notes Origination & Trading Globally at Morgan Stanley added, “We are pleased to work with such a committed and high-quality issuer on what is a very important initiative within Morgan Stanley Wealth Management. We anticipate significant demand for structured offerings that allow our retail clients to participate in sustainable, climate-friendly opportunities going forward.”

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.

Transaction Summary

Issuer: World Bank (International Bank for Reconstruction and Development, IBRD)
Issuer rating: Aaa/AAA
Amount: USD 30 million
Settlement date: September 30, 2014
Maturity date: September 30, 2024
Issue price: 100%
Coupon: Step Up Schedule; Years 1-5: 2.25%, Year 6: 3%, Year 7: 3.5%, Year 8: 4%, Year 9: 4.50%, Year 10: 6%
Early Redemption: Early Redemption: The issuer has the right to call the note at par on Sep 30, 2015, and semi annually thereafter.
Early Redemption dates: Each September 30th and March 30th, beginning September 30, 2015
Denomination: USD 1,000 and integral multiples of USD 1,000 in excess thereof
Clearing system: DTC
Lead manager: Morgan Stanley & Co. LLC
ISIN: US45905U7B48 / 45905U7B4

* Please see the Final Terms for a detailed description of the Terms and Conditions of the notes

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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